2. _________ are valuable to businesses because they can connect, communicate, collaborate, and do commerce on-demand, in real-time, and at a distance.
a) Multimedia networks
b) Interactivity applications
c) Broadband infrastructures
d) Podcasts

3. Which of the following is not an impact of the mass migration of users from PCs to mobile devices?
a) It has improved the privacy of users and security of corporate networks.
b) It has expanded the scope of information systems beyond traditional organizational boundaries.
c) It has torn down the walls between business, professional, and personal lives.
d) It has made location irrelevant to a large extent.

4. Which of the following is a characteristic of competitive advantage?
a) It is a long lasting edge over competitors if based on IT.
b) It is short-lived if competitors quickly duplicate it.
c) It requires the use of social media and networks.
d) It provides a big strategic payoff.

5. While of the following statements about mobile market opportunities is false?
a) Mobiles are replacing computers as the primary way to connect with public and private networks and to get work done.
b) Mobile gadgets are starting to look and feel like handheld computers, able to run all sorts of software.
c) Desktop and laptop computers are taking on more and more nontraditional duties, like streaming media to TV sets, stereos, and other household appliances.
d) Touch-navigate devices running on 3G and 4G networks create business opportunities and eliminate business threats.

6. According to Pew Research, newspapers have seen ad revenue __________ during the time between 2007 to 2010.
a) rise 10%
b) remain constant
c) fall 43%
d) fall 75%

7. Facebook’s rapid growth and its ranking as number one is an interesting and informative business case because:
a) it shows the power of IT to disrupt the status quo and transform industries.
b) it is a public company with an immensely-profitable business model.
c) it has positioned itself solely as a social network.
d) all of the above

8. In March 2010, __________ pulled in more Internet traffic in North America than Google.
a) eBay
b) Facebook
c) Microsoft
d) Apple

9. Innovation leads to profitable growth if that innovation:
a) generates new profit pools.
b) increases demand for products and services.
c) attracts new competitors.
d) Both a and b

10. How a company generates revenue from its assets is referred to as its __________.
a) asset infrastructure
b) business model
c) corporate culture
d) organizational structure

12. According to McKay and Marshall, a comprehensive business model is composed includes each of the following elements except:
a) A description of all products and services the business will offer.
b) A description of the business process required to make and deliver the products and services.
c) A description of the customers to be served.
d) A description of competitive forces in the industry.

14. Which of the following is not a component of an information system?
a) input
b) hardware
c) network
d) people

15. A company believes that superb customer service and on-time delivery are valuable and critical to their success. Their beliefs and values form the __________ that influences the company’s IT investments.
a) feedback
b) business functions
c) social context
d) inputs

16. __________ are shaking-up or disrupting the ways companies do business, the jobs of managers and workers, the design of business processes, and the structure of markets.
a) IT innovations
b) Wireless networks
c) Social media
d) Social networks

17. Performance improved significantly at 1-800-Contacts after the company invested in __________ that enabled call center operators to monitor their performance as often as every 15 minutes.
a) semiautomatic business processes
b) dashboard reporting tools
c) private networks
d) social networks

19. The value of an information system is determined by the relationships among ISs, people, and business processes—which are influenced strongly by:
a) fast, accurate communication and collaboration.
b) huge amounts of information that is accessible via networks.
c) organizational culture..
d) automation of decision making

20. Widespread adoption of new technology is going to __________ the usual way business is done.
a) disrupt
b) cause minor changes in
c) destroy
d) have little effect on

21. What has made location practically irrelevant to doing business?
a) social media
b) social networks
c) widespread use of mobile devices
d) Google

26. Business models include a __________, which is an analysis of the benefits of using the specific model.
a) revenue model
b) supply chain
c) value proposition
d) profit margin

27. Managers decide to increase the number of new accounts by 4.0% within the next quarter. This is an example of:
a) an objective.
b) a strategy.
c) customer loyalty.
d) qualitative metric.

28. A company’s goals are increased sales and improved customer loyalty. Which of the following is correct?
a) Sales revenue is a rather easy-to-calculate quantitative metric.
b) Customer loyalty is a quantitative metric with a longer time dimension.
c) Sales revenue is a quantitative metric with a longer time dimension.
d) Customer loyalty is a qualitative metric with a shorter time dimension.

29. In order to manage performance, a fundamental requirement is __________.
a) using real-time dashboards and reporting tools
b) being able to measure
c) knowing that the indicator is measuring the right thing
d) b and c

30. Measuring performance requires each of the following except:
a) comparing results to competitors.
b) identifying the most meaningful measures of performance.
c) being able to measure them correctly.
d) selecting the set of measures that provides a holistic indicator of performance.

32. __________ are a measure of the impact a business’ activities have on the environment, and in particular climate change.
a) Carbon footprints
b) Hydrogen footprints
c) Toxic wastes
d) Greenhouse emissions

33. Why are companies, such as Monsanto and Wells Fargo, willing to invest in the building of new data centers?
a) To stop wasting capital maintaining outdated energy-inefficient data centers.
b) To comply with government energy regulations.
c) To develop new computing capabilities.
d) To improve business process performance.

34. Ethical issues can be challenging because:
a) there are no standards of right and wrong.
b) security is more important than privacy.
c) all countries agree on what is ethical.
d) what is considered ethical by one person may seem unethical to another.

35. KD Company is looking to expand its business operations into a developing country. As part of SWOT analysis, KD needs to investigate that country’s:
a) political stability
b) economic stability
c) critical infrastructure
d) All of the above

36. __________ is a series of processes in which an organization selects and arranges its businesses or services to keep the organization viable even when unexpected events disrupt its businesses, markets, products, or services.
a) Strategic planning
b) SWOT
c) Value proposition
d) Threat analysis

41. According to Porter’s competitive forces model, there are five major forces in an industry that affect the degree of competition. Those five forces impact:
a) sales.
b) profit margins.
c) marketing.
d) expenses.

42. FedEx and UPS have ISs that are difficult to duplicate and very expensive. Those ISs:
a) create barriers that reduce the threat of entry.
b) increase the threat of substitute services.
c) decrease bargaining power of customers.
d) increase bargaining power of suppliers.

43. __________ involve the purchase of materials, the processing of materials into products, and delivery of products to customers.
a) Supply chains
b) Logistics
c) Primary activities
d) Support activities

44. For most organizations, if their computer networks go down, __________.
a) social networks are used
b) data centers are used to store data
c) so does the business
d) business continues as usual

45. According to Occupational Outlook Handbook, 2010-11 Edition published by the U.S. Bureau of Labor Statistics, what is the outlook for Computer and Information Systems Manager?
a) Employment is expected to grow faster than the average for all occupations.
b) A master’s degree in a computer-related field is required for entry-level positions.
c) Employment is expected to grow slower than the average for all occupations.
d) Job prospects are uncertain.

True/False

46. During the last decade, Facebook, LinkedIn, YouTube, Twitter and blogs became extensions of businesses to reach customers, prospects, and business partners.

47. The massive adoption of smart devices has created a huge base of multi-tasking users, and a market for companies to tap and target.

48. Facebook created an entirely new market and changed the game for industries who were not its usual competitors–namely, music, media, and consumer electronics companies.

49. Some types of IT, such as databases and network services, are commodities, which do not provide a special advantage.

50. A SWOT model spells out how a company creates or adds value in terms of the goods or services it produces.

51. An IS can be as small as a smartphone with a software app that can snap tags to load a Web site. Or it may include several thousand computers of various types, scanners, printers, and other devices connected to databases via wired and wireless telecommunication networks.

54. IT no longer creates challenging ethical issues because practices such as employee e-mail monitoring and unrestricted use of customer data are accepted as necessary or legal.

55. Strategy planning is critical for all organizations, including government agencies, healthcare, education, military, and other nonprofit and not-for-profit ones.

56. During SWOT analysis, there is usually agreement among managers because SWOT analysis is objective, forward-looking, and data-driven.

57. According to Porter’s competitive forces model, Apple, Microsoft, and auto manufacturers have strong bargaining power as suppliers because their brands are powerful.

58. Rivalry among existing firms in the industry is a competitive force that is most likely to be weak when entry barriers are low; threat of substitute products is high, and suppliers and buyers in the market attempt to control.

59. Sabermetrics is the mathematical analysis of baseball player batting and pitching performances.

60. A batch system is an IS that provides fast enough access to information or data so that an appropriate decision can be made, usually before data or situation changes.

Short Answer

61. In March 2010, Facebook pulled in more traffic in North America than __________.

62. Basic types of IT are __________ because companies need to function, but they do not provide a special advantage.

63. How a company generates revenue from its assets is referred to as its __________.

65. __________ is a set of applications or programs that instruct the hardware to process data or other inputs such as voice commands.

66. Energy and __________ footprints are a measure of the impact a business’ activities have on the environment, and in particular climate change.

67. __________ relates to standards of right and wrong,

68. __________ analysis involves the evaluation of strengths and weaknesses, which are internal factors; and opportunities and threats, which are external factors.

69. __________ activities are those business activities through which a company produces goods. Examples of those activities are purchasing materials, processing materials, and delivery of products to customers.

70. Innovation and adaptability are __________ because they are examples of things that must go right for a company to achieve its mission.

Essay

71. Identify three interactivities that have potential business value and that can occur by snapping a 2D tag.

72. List and describe the four basic functions of an information system.

73. There are two fundamental requirements for managing business performance: being able to measure and knowing that your indicator is measuring the right thing. Explain each of these requirements and why they are challenging.

74. List and explain the four major steps in business performance management (BPM).

3. The number of hours an employee worked in a certain week is an example of:
a) information.
b) a transaction.
c) knowledge.
d) data.

4. __________ is data that has been processed, organized, or put into context so that it has meaning and value to the person receiving it.
a) Information
b) A transaction
c) Knowledge
d) A report

5. __________ consists of data that have been processed, organized, and put into context to be meaningful, and to convey understanding, experience, accumulated learning, and expertise.
a) Information
b) A transaction
c) Knowledge
d) Wisdom

6. Managing a product recall in a way that minimizes negative impacts on sales of other products and profits is an example of:
a) data.
b) information.
c) knowledge.
d) decision.

8. Why are TPSs critical systems?
a) Data need to be analyzed and reported to managers to support their decision making processes.
b) Manual systems are subject to too much human error.
c) Transactions that do not get captured can result in lost sales, dissatisfied customers, and other types of data errors.
d) They are essential components of process control systems.

9. Processing of transactions is done in one of two modes:
a) batch and real-time.
b) online and offline.
c) manual and computerized.
d) online and real-time.

10. Which of the following is an advantage of batch processing over online transaction processing?
a) higher data quality
b) costs less
c) more up-to-date data
d) a and b

11. If a customer sets up an account with REI.com to purchase from their Web site, the __________ will validate that the address, city, and postal code are consistent and valid in order to improve __________.
a) OLTP; data storage
b) OLTP: data visibility
c) TPS; data quality
d) TPS; data transfer

12. Data errors:
a) are difficult to correct the later they are detected.
b) expose the company to legal action.
c) may never be detected and corrected.
d) all of the above

16. Which of the following is not an objective of MIS?
a) to provide reports to managers for tracking operations
b) to provide reports to managers for monitoring
c) to provide reports to managers for control
d) to provide reports to managers for strategic planning

17. __________ reports are created or run according to a pre-set schedule, such as daily, weekly, or quarterly.
a) Periodic
b) Exception
c) Ad hoc
d) Functional

19. Sony’s managers notice a significant change in demand for the company’s eReaders. They request that reports be generated so they can learn more about this situation. What is this type of report?
a) Periodic
b) Exception
c) Ad hoc
d) Functional

21. Deciding which new products to develop or which new markets to enter are examples of __________ decisions because they depend on human intelligence, knowledge, and/or experience.
a) structured
b) semistructured
c) unstructured
d) routine

22. Decision makers manipulate models in a DSS to perform __________ analysis, which refers to changing assumptions or data in the model to see the impacts of those changes on the outcome.
a) goal seeking
b) experimental
c) structured
d) what-if

23. A __________ is a visual presentation of critical data, such as the results of a report or analysis, to more quickly understand data.
a) dashboard
b) GUI
c) touch screen
d) KPI

24. __________ is a computerized process for conducting searches in large amounts of data and information in order to discover unknown valuable relationships in the data.
a) Drill down
b) Data mining
c) Business mining
d) Data analytics

26. A company’s competitive advantage, such as low cost, quality, and/or speed to market, depends on:
a) how well its supply chain is aligned and managed.
b) minimizing the physical flows of its products.
c) how well it maximizes its global sourcing.
d) its ability to recycle.

27. Because Wal-Mart has thousands of suppliers to manage and is constantly looking for new ones worldwide, they invested in a new __________ strategy.
a) mobile networking
b) global sourcing
c) global support
d) mobile support

28. Wal-Mart’s global sourcing strategy is designed:
a) to reduce costs of goods, increase speed to market, and improve the quality of products.
b) to identify and evaluate marketing opportunities.
c) to increase production efficiency.
d) to process transactions in real-time.

29. By linking a company with its suppliers, vendors, and customers, the supply chain creates __________.
a) logistics inefficiencies
b) automated distribution centers
c) an extended enterprise
d) a warehouse control system

31. Which of the following best describes RFID implementation?
a) RFID systems are frequently implemented as stand-alone systems.
b) RFID implementation has been slow due to costs, privacy, and security concerns.
c) RFID implementations are used only to track products and pallets.
d) RFID implementation has been rapid and widespread for security reasons.

32. When employees log into the company network or e-mail accounts, or access data or documents to perform their jobs, two critical factors impacting their productivity are:
a) password strength and availability of mobile networks.
b) cloud computing and software applications.
c) virtualization and private clouds.
d) speed of the response and the reliability of the hardware.

33. A company’s __________ determines the workload that its ISs, apps, and mobile computing devices can handle and their speed.
a) TPS
b) network access point
c) IT infrastructure
d) firewall

38. The U.S. Department of Defense implemented __________ to service many military agencies in order to reduce IT infrastructure costs while protecting its sensitive data.
a) RFID
b) cloud computing
c) a private cloud
d) virtualization

40. Which of the following statements about virtualization is false?
a) Virtualization is primarily about cost-cutting.
b) Virtualization is often a key part of an enterprise’s disaster recovery plan.
c) Virtualization separates business applications and data from hardware resources to pool hardware resources.
d) Virtualization increases the flexibility of IT assets, allowing companies to consolidate IT infrastructure.

41. Large companies and government agencies with multiple locations may set up __________ on servers that they own if data confidentiality is a key requirement.
a) public clouds
b) private clouds
c) encrypted clouds
d) social clouds

42. Cloud computing is Internet-based computing in which shared resources, such as hard drives and software apps, are provided to computers and other devices __________, like a public utility.
a) in batch
b) via mobile networks
c) on-demand
d) via SaaS

43. All of the following are characteristics of software-as-a-service (SaaS) except:
a) SaaS is an increasingly popular IT model for large but not small companies in which software is available to users as needed.
b) The SaaS model was developed to overcome the challenge to an enterprise of being able to meet fluctuating demands on IT resources efficiently.
c) Other terms for SaaS are on-demand computing, utility computing, and hosted services.
d) Usually there is no hardware and software to buy since the apps are used over the Internet and paid for through a fixed subscription fee, or payable per an actual usage fee.

44. What is a disadvantage of cloud computing?
a) It may be more difficult to get to the root of IT infrastructure performance problems.
b) It is higher cost than company-owned IT infrastructures.
c) There is more control than with company-owned IT infrastructures.
d) Service-level agreements (SLAs) with vendors are not necessary.

45. Which of the following is a major cloud computing vendor?
a) Amazon’s EC2
b) Google’s AppEngine
c) Microsoft’s Azure
d) All of the above

True/False

46. Business software applications are hardware devices that support a specific task or business process.

47. Multiple business apps form a system that supports a functional area–marketing, finance, human resources, production, operations, accounting, and IT.

48. To track attendance at basketball games, the Dallas Mavericks put RFID codes on tickets, which enabled them to assess the effectiveness of their marketing efforts.

49. The U.S. Army enlists video games and virtual worlds to teach soldiers interpersonal skills, cultural awareness, and negotiation skills that are heavily dependent on culture for combat in foreign environments.

50. Knowing how to manage a vehicle recall to minimize negative impacts on new vehicle sales is an example of information.

51. Data is the raw material from which information is produced; and the quality, reliability and integrity of the data must be maintained for the information to be useful.

52. The quarterly sales of new Toyota vehicles from 2008 through 2010 is knowledge because it would give some insight into how the vehicle recalls during 2009 and 2010 impacted sales.

54. Decision support systems are critical systems because transactions that do not get captured can result in lost sales, dissatisfied customers, and many other types of data errors.

55. Transaction data that are captured by a TPS are always processed in real-time, stored in a database, and then are available for use by other information systems.

56. Payroll processing is typically done in batch mode; while e-commerce transactions are processed in real-time.

57. When a customer sets up an account with Newegg.com to purchase from their Web site, the TPS validates that the address, city, and postal code are correct and consistent to insure data quality.

58. DSSs support unstructured and semi-structured decisions, such as whether to make or buy products, or what new products to develop and introduce into existing markets.

59. Supply chains can be grossly inefficient unless the companies in the supply chain can share data, collaborate, and respond to changes in demand and do so efficiently and quickly.

60. Business intelligence (BI) increases the flexibility of IT assets, allowing companies to consolidate IT infrastructure, reduce maintenance and administration costs, and prepare for strategic IT initiatives.

Short Answer

61. In order for __________ or real-time processing to occur, the input device or Web site must be directly linked via a network to the TPS.

62. Processing improves _________, which is important because reports and decisions are only as good as the data they are based upon.

63. _________ is a computerized process for conducting searches in large amounts of data and information in an attempt to discover unknown valuable relationships in the data.

64. __________ involves identifying sellers that could provide a retailer, such as Wal-Mart, with products or services to sell in their stores and online.

65. __________ is the collection of hardware, software, processes, networks, and users.

66. The __________, which is the term used to refer to the Internet, has greatly expanded the options for enterprise IT infrastructures.

67. Cloud computing evolved from __________, which is an approach based on IT consolidation that enables more flexible IT infrastructures and lower IT costs.

68. With __________, instead of buying and installing expensive packaged enterprise applications, users can access software apps over a network, with an Internet browser being the only absolute necessity.

69. Large companies or government agencies with multiple locations can set up their own __________ on servers that they own if data confidentiality is a key requirement and they want to reduce IT infrastructure costs.

70. __________ is the pooling of physical storage from multiple network storage devices into what appears to be a single storage device that is managed from a central console.

Essay

71. Define data, information, and knowledge. Give an example of each.

72. What are the three defining characteristics of DSSs?

73. What is an advantage of virtualization? List and explain one type of virtualization.

2. What is the goal of data management?
a) To store data and documents in multiple locations to insure that they are accessible to everyone on demand.
b) To capture financial data in real-time from transactions and Web sites.
c) To provide the infrastructure and tools to transform raw data into usable corporate information of the highest quality.
d) To link databases of supply chain partners so all data can be shared.

3. As a general rule, in order to maximize earnings, companies invest in data management technologies that increase:
a) the opportunity to earn revenues.
b) the ability to cut expenses.
c) employee turnover.
d) both a and b

4. Which of the following is not a reason why managers and information workers may be constrained by data?
a) data are incomplete
b) data are stored in a data warehouse
c) data are out of context
d) data are so overwhelming that they require too much time to analyze

5. In the healthcare industry, data errors __________.
a) increase healthcare costs by billions of dollars
b) have minimized healthcare costs
c) have no impact on patient care
d) have been eliminated by the use of data warehousing

8. According to the principle of __________, the more recent the data, the more valuable they are.
a) data uncertainty
b) 90/90 data use
c) diminishing data value
d) data in context

9. According to the principle of __________, data must be integrated, processed, analyzed, and formatted into “actionable information.”
a) data uncertainty
b) 90/90 data use
c) diminishing data value
d) data in context

10. According to the principle of __________, a majority of data lose much of their value after three months.
a) data uncertainty
b) 90/90 data use
c) diminishing data value
d) data in context

11. Although vendors may claim that their __________ solution creates “a single version of the truth,” this claim is probably not true.
a) master data management
b) RFID
c) data mining
d) client/server

12. Which is not a benefit of having a unified view of customers?
a) More accurate customer data to support marketing, sales, support, and service initiatives.
b) Better responsiveness to ensure that customer service representatives have up-to-date, reliable information on the customers.
c) Faster transaction processing by organizing the data in one location.
d) Better revenue management and more responsive business decisions.

13. Businesses that collect data about employees and customers have the legal duty to __________.
a) destroy that data after 30 days
b) protect that data
c) retain that data for seven years
d) Both a and b

14. All companies create __________, which are documents that record business activities and functions such as contracts, research and development, accounting source documents, memos, and customer/client communications.
a) business records
b) transactions
c) computer files
d) databases

15. A computer system organizes data into a hierarchy that begins with __________, which are the smallest unit of data a computer can process.
a) bits
b) attributes
c) fields
d) bytes

17. Which of the following best represents a unique identifier field or primary key?
a) zip code
b) customer last name
c) product type
d) product ID

18. Records can be arranged in several ways on a storage medium. The arrangement of records determines:
a) how individual records can be accessed.
b) how long it takes to access records.
c) how individual records can be accessed and how long it takes to access them.
d) the storage media used for storage.

19. In __________ file organization, which is the way files are organized on tape, data records must be retrieved in the same physical sequence in which they are stored.
a) direct
b) random
c) sequential
d) primary

21. __________ programs can provide access to all organizational data and overcome many of the problems associated with data file environments.
a) Sequential data
b) Database management
c) Business record
d) ISAM

22. Disadvantages of centralized databases are all of the following except:
a) they are vulnerable to a single point of failure.
b) when users are widely dispersed and need data manipulations, they can experience transmission delays.
c) when the centralized database computer fails to function properly, all users are affected.
d) much more expensive to set up and maintain than a distributed database.

23. An advantage of __________ is that they provide the response speed of localized files without the need to replicate all changes in multiple locations.
a) centralized databases
b) replicated databases
c) partitioned databases
d) file systems

25. Which is not an advantage and capability of a DBMS?
a) security
b) audit trail
c) backup
d) physical view

26. Being a smart company involves each of the following except:
a) having on-demand access to relevant data.
b) being able to understand the data, usually with the help of data visualization tools.
c) organizing data in a centralized database management system.
d) using what you learn from the data to increase productivity or profitability.

27. The main difference between a database and data warehouse is that:
a) databases are designed and optimized to store data, whereas data warehouses are designed and optimized to respond to analysis questions that are critical for a business.
b) databases are designed and optimized to analyze data, whereas data warehouses are designed and optimized to store data for sharing.
c) databases are designed to detect trends in the data, whereas data warehouses are designed to support supply chains.
d) databases are designed to support traditional commerce, whereas data warehouses are designed to support e-commerce.

28. __________ for banking and debit cards are designed to ensure that every transaction gets recorded and processed online and in real-time.
a) File systems
b) Database systems
c) OLAP systems
d) Data warehouses

32. Which of the following statements about data warehousing is false?
a) Data in the data warehouse are constantly updated and volatile.
b) Many organizations built data warehouses because they were frustrated with inconsistent decision support data.
c) Data warehouses are infrastructure investments that companies make to support current and future decision making.
d) Data warehouses deliver information more effectively and efficiently than database systems.

33. Which is not a characteristic of a data warehouse?
a) Data are organized by subject, such as customer, vendor, or product.
b) Data are coded in a consistent manner.
c) Data are kept for many years to be used for identifying trends, forecasting, and comparisons over time.
d) Most applications of data warehousing are in real-time.

35. Data warehousing is most appropriate for organizations that any of the following characteristics except:
a) end users need to access large amounts of data.
b) the organization serves a large, diverse customer base.
c) end-users perform a lot of data analysis.
d) operational data needed to support business processes are centralized.

36. The high costs of data warehouses can make them too expensive for a company to implement. As an alternative, many firms create lower-cost, scaled-down __________.
a) data marts
b) data stores
c) multidimensional databases
d) SBUs

37. Advantages of data marts over data warehouses are all of the following except:
a) data marts require shorter lead times for implementation, often less than 90 days.
b) data marts allow for local rather than central control, giving end-users more power or control.
c) data marts have higher quality and more complete enterprise data.
d) data marts are easier to understand and navigate because they contain less data.

38. Despite their potential benefits, implementations of large data warehouses may fail. Reasons for data warehousing failures are all of the following except:
a) vendors overselling capabilities.
b) lack of attention to cultural issues.
c) poor data quality.
d) integration with operations.

41. Companies implement __________ systems to retain and archive their business records that are not needed for current operations or decisions, but that must be accessible for legal or auditing obligations.
a) electronic records management
b) database management
c) archive management
d) infrastructure management

42. To be retrievable, a company’s electronic records must be __________ like structured data in a database.
a) organized
b) indexed
c) organized and indexed
d) organized, indexed, and encrypted

43. Creating backups of records is not a form of electronic records management (ERM) because:
a) the content on backups is not organized so that it can be accurately and easily retrieved.
b) business records and documents may need to be modified.
c) records and documents cannot be stored together.
d) the requirement to save records is new.

44. Nearly __________ percent of U.S. corporations become engaged in lawsuits and at any one time, the average $1 billion company in the U.S. faces 147 lawsuits.
a) 25
b) 50
c) 75
d) 90

45. __________ is the process of finding, gathering, and filtering of electronic files and information in preparation for trial, legal or regulatory investigation, or administrative action as required by law.
a) Archiving
b) Discovery
c) Electronic discovery
d) Litigation

True/False

46. Data management is important because no enterprise can be effective without high quality data that is accessible when needed.

47. A spreadsheet mistake created an error that cost TransAlta $24 million because they bought power transmission hedging contracts at higher prices than it would have if the decision had been based on accurate information.

48. Every day, healthcare administrators and others in the healthcare supply chain waste up to 10 percent of their time correcting data errors at an estimated cost of $20 per error to correct.

49. According to the principle of 90/90 data use, most organizations cannot operate at peak performance with blind spots (lack of data availability) of 90 days or longer.

50. According to the 90/90 data-use principle, a majority of stored data, as high as 90 percent, is frequently accessed after 90 days.

51. Data that are accurate, timely, and clean might not be usable if people do not get data in the format they need to do their jobs.

52. According to the market intelligence firm IDC, organizations with at least 1,000 knowledge workers lose over $5 million annually in time wasted by employees reformatting data as they move among applications.

53. Enterprise portals are a set of software applications that consolidate, manage, analyze, and transmit data to users through Web-based interface.

54. As businesses become more complex and their volumes of enterprise data expand rapidly, organizations are investing in master data management (MDM) as a way to isolate and archive different types of data.

55. Although vendors may claim that their MDM solution creates “a single version of the truth,” this claim is not true because constructing a completely unified view of all master data is simply not possible.

56. Businesses run on raw data.

57. A data mart is a small data warehouse designed for a strategic business unit (SBU) or a single department.

58. Data warehouses are designed as online analytical processing (OLAP) systems, meaning that the data can be queried and analyzed much more efficiently than OLTP application databases.

59. Business records are different from documents in records cannot be modified or deleted, except in controlled circumstances. In contrast, documents generally are subject to revision.

60. When they are properly managed, electronic records are strategic assets. But when they are improperly managed or destroyed, they are liabilities to an organization.

Short Answer

61. __________ are resources with recognized value that are under the control of an individual or organization.

62. A(n) __________ is a specialized type of database that aggregates data from transaction databases so they can be analyzed.

64. Data __________ refers to presenting data in context and in ways that are faster and easier for users to understand.

65. __________ is a process whereby companies integrate data from various sources or enterprise applications to provide a more unified view of the data.

66. Each record in a database needs an attribute (field) to uniquely identify it so that the record can be retrieved, updated, and sorted. This unique identifier field is called the __________.

67. A program, such as Access and Oracle 11g, that provides access to databases is known as a(n) __________.

68. Databases are online __________ systems in which every transaction has to be recorded quickly and correctly.

69. Data warehouses are designed as online __________ systems, meaning that the data can be queried and analyzed much more efficiently than OLTP application databases.

70. __________ is the process of gathering electronic files and information in preparation for trial, legal or regulatory investigation, or administrative action as required by law.

Essay

71. Although having high-quality data are essential for business success, numerous organizational and technical issues make it difficult to reach this objective. Give two reasons why companies don’t achieve high-quality data.

72. Identify three data management problems arising from the file environment approach. Give an example of each problem.

73. What are three of the major data functions performed by a DBMS? Briefly explain the functions.

74. List four reasons why data warehouses fail?

75. Explain discovery and electronic discovery (e-discovery). Why do companies need to be prepared for discovery?

3. Why did the New Mexico Department of Transportation start offering passengers free public 4G WiMAX Internet to make public transportation more attractive to commuters?
a) To assist with New Mexico’s goal to become a high-tech state.
b) To improve traffic congestion conditions.
c) To reduce pollution and smog conditions along the main traffic corridor in the state.
d) To reduce the population’s dependence on gasoline.

6. Plain old telephone service (POTS) and most wired telephone calls are transmitted, at least in part, over a __________.
a) dedicated circuit that is only used for that call
b) dedicated circuit that is shared by many calls
c) packet circuit that is only used for that call
d) packet circuit that is shared by many calls

7. When you send a file or e-mail message over a network, it is broken into smaller blocks called __________ that follow different paths from the source to the destination.
a) circuits
b) nodes
c) packets
d) switches

8. __________ is the throughput capacity of a network, which is a measure of the speed at which data is transmitted.
a) Bandwidth
b) Protocol
c) TCP/IP
d) Broadband

9. A __________ is a set of rules that govern how devices on a network exchange information and function in order to “talk to each other.”
a) bandwidth
b) protocol
c) TCP/IP
d) broadband

10. __________ was created by the U.S. Department of Defense to ensure data integrity and maintain communications in the event of catastrophic war.
a) Bandwidth
b) Protocol
c) TCP/IP
d) Broadband

13. What is significant about 4G networks is that they do not have a __________, which both 2G and 3G networks do have.
a) packet-switched IP system
b) circuit-switched subsystem
c) WiMAX standard
d) GSM-based LTE subsystem

15. When evaluating mobile network solutions, the factors to consider include all of the following except:
a) easy to deploy, manage and use.
b) always makes the best connection possible.
c) works separately from other systems.
d) enables secure and reliable communications.

17. __________ is a technology that allows computers to share a network or internet connection wirelessly without the need to connect to a commercial network.
a) RFID
b) LTE
c) WiMAX
d) Wi-Fi

18. All of the following describe WiMAX except:
a) an 802.16-based broadband wireless metropolitan area network (MAN) access standard.
b) can deliver voice and data services without the expense of cable.
c) has shorter distance limitations than DSL and cable.
d) does not require a clear line of sight to function.

19. Which is not one of the general types of mobile networks?
a) Bluetooth
b) wide area networks (WANs)
c) WiMAX
d) local area networks (LANs)

20. __________ are built by attaching a wireless access point (WAP) to the edge of the wired network.
a) WLANs
b) WiMAX
c) Wi-Fi hot spots
d) Base stations

21. __________ is key to success in everything from business partnerships to personal and professional relationships.
a) Access to mobile networks
b) Effective communication
c) Real-time decision making capability
d) The Internet

22. An enterprise’s network capability depends on all of the following except:
a) proper planning.
b) upgrades.
c) open culture.
d) bandwidth.

24. The __________ is critical because it provides the infrastructure for collaborative work within the company and with external partners and customers, regardless of their location.
a) network architecture
b) enterprise portal
c) social network
d) wireless access point

25. Within an enterprise, the capability and willingness to collaborate depends on:
a) a corporate culture that people trust.
b) information and tools.
c) authority to plan and make decisions.
d) all of the above

26. What was a cause of the U.S. Customs’ network crash at Los Angeles Airport (LAX) that stranded passengers for up to 11 hours?
a) A new cutting edge network that had not been tested sufficiently
b) A hacker attack
c) Equipment breakdown and human error
d) Power failure

27. Why had various information services—namely documents, voice, and video—functioned independently of each other?
a) They were transmitted using different protocols.
b) For information privacy and security reasons.
c) They were transmitted on circuit-switched networks.
d) To minimize network traffic congestion.

28. Multiple networks were needed to transmit documents, voice, and video because:
a) of limited bandwidth.
b) of the lack of interoperability between devices.
c) they used the same transmission protocol.
d) outdated IP networks.

29. __________ refers to the ability to provide services to and accept services from other systems or devices.
a) Protocol
b) Broadband
c) Interoperability
d) Multimedia

30. The Internet protocol suite consisting of __________ is the standard used with almost any network service.
a) HTTP
b) WAP
c) HTML
d) TCP/IP

31. _______ is the single most popular network protocol in the world, and provides the architecture that made convergence possible.
a) HTTP
b) IP
c) TCP
d) FTP

32. In preparation for transmission, data and documents are digitized into __________ based on the Internet Protocol.
a) bytes
b) packets
c) blocks
d) routers

33. __________ are networks that are capable of transmitting data at very fast rates, but operate in a limited area, such as an office building, campus, or home.
a) MANs
b) Hot spots
c) LANs
d) WANs

34. TCP performs error checking, which can cause packet delivery delays. Because of the error-checking process, TCP is not well-suited for what type of transmissions?
a) digital voice or video
b) data
c) documents
d) e-mail

35. __________ transmits voice and data in packets and has become one of the most cost effective ways to communicate.
a) TCP
b) UDP
c) VoIP
d) UM

37. Which of the following is not a characteristic of wireless device software development?
a) Developing software for wireless devices had been challenging because there was no widely accepted standard for wireless devices.
b) Software applications have to be customized for each type of device with which the application communicates.
c) Different CPUs, operating systems, storage media, and mobile platform environments create time-consuming porting and testing issues.
d) Supporting different displays is simple because of the convergence of applications.

38. The Internet functions as the __________, and the Web (WWW) is __________ that runs on the Internet.
a) transport mechanism; an application
b) information architecture; a browser
c); protocol; a search engine
d) hardware; software

39. Which of the following is not a characteristic of intranets?
a) Portals (gateways) that provide easy and inexpensive browsing and search capabilities.
b) Company-owned networks that use IP technology to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses.
c) With screen sharing and other groupware tools, intranets can be used to facilitate collaboration.
d) Companies deliver policies, pay stub information for direct deposits, benefits, training materials, and news to their employers via their intranets.

41. Several factors are driving the need for messaging and collaboration. All of the following are driving factors except:
a) people need to work together and share documents.
b) groups make most of the routine and easy decisions in organizations.
c) organizational decision making is difficult when team members are geographically spread out and working in different time zones.
d) nearly 87 percent of employees around the world work in remote offices.

42. Which of the following is a dysfunction of the group process?
a) Social pressures of conformity can lead to groupthink.
b) A group may produce synergy during problem solving.
c) Group members may have their egos embedded in the decision, and so they may be committed to the solution.
d) Groups are better than individuals at understanding problems.

43. According to the Cellular Telecommunications Industry Association, __________ is “a way of measuring the quantity of radio frequency energy that is absorbed by the body.”
a) RF rate
b) carbon footprint
c) radiation rate
d) specific absorption rate (SAR)

45. __________ shows the power of the individual in the connected age—a better research tool than major corporations had in the 1990s.
a) Facebook
b) Google
c) Microsoft
d) eBay

True/False

46. Transmission of a signal over a series of networks is made possible by switches and routers, which are hardware devices, and nodes on the network.

47. The distinguishing characteristic of packet switching is that once a connection is made between the source and destination, the path of the signal along the nodes is dedicated and exclusive.

48. Wireless networks use packet switching and wireless routers to forward packets from one network to another network.

49. Bandwidth is the throughput capacity, or speed, of a network, which depends on what protocol is used.

50. TCP/IP was created by the U.S. Department of Defense to ensure and preserve data security and control communications in the event of catastrophic war.

51. Users can get 4G wireless connectivity through one of two standards: WiMAX or LTE.

52. IP networks form the backbone of worldwide digital networking and enable the convergence of voice, data, and video.

53. Network performance is measured by its data transfer capacity.

54. Apple’s first 4G phone, the HTC EVO 4G was released in summer 2010 with speeds 10 times greater than 3G phones.

55. Pressures to deliver secure service to customers and business partners at reduced costs, to be environmentally responsible, and to support the 24/7 data needs of mobile and remote workers have all increased the demands on corporate networks.

56. The 802.11b standard improves upon other 802.11 Wi-Fi standards by adding multiple-input multiple-output (MIMO) and many other newer features.

57. An enterprise’s network capability will be unreliable or deteriorate without proper planning, maintenance, management, upgrades, and bandwidth of the network to insure that it has sufficient capacity and connectivity to link people, locations, and data.

58. A centralized organization is more responsive to opportunities and problems than a decentralized organization where senior managers, who are less involved in daily operations than lower-level managers, make decisions.

60. Businesses have learned effective strategies to cope with a world that is far more competitive, dynamic, and connected; to counteract the influence of Web 2.0 technologies; and to maintain traditional business models.

Short Answer

61. __________ lose energy as they travel along a network from source to destination, and need to be strengthened with repeaters.

62. Wireless routers are actually wired routers with __________ built-in that provide both wired and wireless at the same time.

63. __________ are standards or a set of rules that govern how devices on a network communicate and how they need to function in order to “talk to each other.”

64. What is significant about 4G networks is that they do not have a __________ subsystem, as do current 2G and 3G networks.

65. Mobile and other devices must be able to communicate with a network and they do so based on __________.

66. __________ is an 802.16-based broadband wireless metropolitan area network access standard that can deliver voice and data services at distances of up to 30 miles, without the expense of cable or the distance limitations of DSL.

67. Often overlooked is the fact that the capability and willingness to collaborate depends on a __________ that people trust.

68. __________ refers to the ability to provide services to and accept services from other systems or devices.

69. With __________, voice and data transmissions travel over telephone wires, but the content is sent as data packets.

70. __________ refers to team members yielding to pressures to conform to a certain way of thinking even if they conflict with one’s beliefs, or being intolerant of new or differing ideas.

Essay

71. List and explain the four factors to consider when evaluating a mobile network.

72. List three factors that impact the quality of an enterprise’s network and ultimately business performance. List two factors that influence the quality of collaboration in an enterprise and ultimately business performance.

73. Explain how data and documents are transferred over a packet-switched network. In your explanation, identify the format, protocol and transfer method. Compare and contrast how data/documents are transferred to how voice is transferred over a circuit-switched network.

74. Identify three benefits or process gains from working in groups. Then identify three dysfunctions of the group process that can lead to process losses.

75. Major companies face small but powerful challenges and competitors that are undermining traditional business models. Explain those challenges and competitors.

Chapter 5: IT Security, Crime, Compliance, and Continuity

Multiple Choice

1. IT risk management includes all of the following except:
a) keeping information security convenient for users and inexpensive.
b) securing corporate systems while ensuring their availability.
c) planning for disaster recovery and business continuity.
d) complying with government regulations and license agreements.

2. Managers have a legal and ethical obligation, which is called __________, to protect the confidential data of the people and partners that they collect, store, and share.
a) security duty
b) fiduciary responsibility
c) confidentiality contract
d) secrecy function

3. Which of the following is a characteristic of information security in organizations?
a) losses due to IT security breaches can destroy a company financially
b) disruptions due to IT security breaches can seriously harm a company operationally
c) to comply with international, federal, state, and foreign laws, companies must invest in IT security to protect their data, other assets, the ability to operate, and net income
d) All of the above

4. Who stole account data from HSBC’s Private Bank in Switzerland and how did HSBC learn about the data theft?
a) Account data was stolen by a former HSBC IT specialist; HSBC learned about the theft from French Authorities several years after the theft.
b) Account data was stolen by a group of hackers who cracked passwords; HSBC detected the data theft from their IT staff within a few days.
c) Malware was used to steal the account data; network intrusion detection systems detected the theft as it was happening.
d) Competitors stole the account data; HSBC learned about the theft months later when customers complained about identity theft.

5. Protecting data and business operations involves all of the following efforts except:
a) making data and documents available and accessible 24×7 while also restricting access.
b) implementing and enforcing procedures and acceptable use policies for company-owned data, hardware, software, and networks.
c) storing and archiving all databases and data warehouses on-site protected by firewalls.
d) recovering from business disasters and disruptions quickly.

6. Prior to 2002, what was the common perspective on infosec?
a) Infosec was mostly a financial issue assigned to the accounting department.
b) The focus was on preemptive approaches to protect ahead of the threats.
c) The biggest concerns were risks from employees and malware.
d) Infosec was viewed as a cost rather than as a resource for preventing business disruptions.

7. A majority of data breaches involve:
a) insider error or action that is either intentional or unintentional.
b) insider action that is intentional.
c) former employees and IT staff.
d) hackers.

8. Which of the following is not a characteristic of IT security?
a) IT security is so integral to business objectives that it cannot be treated as a stand-alone function.
b) Internal threats are not a major challenge because firewalls prevent employee malicious activity.
c) Infosec failures have a direct impact on business performance, customers, business partners, and stakeholders.
d) Infosec failures can lead to fines, legal action, and steep declines in stock prices as investors react to the crisis.

9. A(n) __________ is something or someone that may result in harm to an asset.
a) threat
b) risk
c) vulnerability
d) exploit

11. __________ is the ability of an IS to continue to operate when a failure occurs, usually operating for a limited time or at a reduced level.
a) Botnet
b) Exposure
c) Fault tolerance
d) Spoofing

12. Facebook, YouTube, Twitter, LinkedIn, and other social networks are making IT security dangers worse. Why?
a) Users invite in and build relationships with others. Cybercriminals hack into these trusted relationships using stolen log-ins.
b) E-mail viruses and malware have been increasing for years even though e-mail security has improved.
c) Communication has shifted from social networks to smartphones.
d) Web filtering, user education, and strict policies cannot help prevent IT security dangers on Facebook and other social networks.

13. __________ is the elapsed time between when vulnerability is discovered and when it’s exploited and has shrunk from months to __________.
a) Time-to-exploitation; weeks
b) Time-to-exploitation; minutes
c) Denial of service; days
d) Denial of service; seconds

14. When new vulnerabilities are found in operating systems, applications, or wired and wireless networks, vendors of those products release __________ or __________ to fix the vulnerabilities.
a) patches; service packs
b) patches; downloads
c) firewalls; spyware
d) service packs; firewalls

15. Which of the following is not a characteristic of money laundering and terrorist financing?
a) Transnational organized crime groups use money laundering to fund their operations, which creates international and national security threats.
b) Cybercrime is safer and easier than selling drugs, dealing in black market diamonds, or robbing banks.
c) Funds used to finance terrorist operations are easy to track, which provides evidence to identify and locate leaders of terrorist organizations and cells.
d) Online gambling offers easy fronts for international money-laundering operations.

16. Hackers involve unsuspecting insiders in their crimes using tactics called __________ that trick insiders into revealing access codes that outsiders should not have.
a) social engineering
b) phishing
c) spoofing
d) botnets

17. A(n) __________ occurs when a server or Web site receives a flood of traffic—much more traffic or requests for service than it can handle, causing it to crash.
a) advanced persistent threat (APT)
b) spoofing attack
c) malware intrusion
d) denial of service (DoS) attack

18. Which of the following is not one of the essential defenses against botnets and malware?
a) Anti-malware tools and anti-virus software
b) Intrusion detection systems (IDS)
c) Spyware and warez software
d) Intrusion prevention systems (IPS)

19. Internal fraud prevention and detection measures are based on __________ and __________.
a) a detailed recovery plan; containment, including a fault-tolerant system
b) perimeter defense technologies, such as e-mail scanners; human resource procedures, such as recruitment screening
c) general controls; application controls
d) physical controls, including authorization; authentication systems

20. Crime can be divided into two categories depending on the tactics used to carry out the crime. What are those two categories?
a) personal and non-personal
b) felonies and misdemeanors
c) insider and outsider
d) violent and nonviolent

21. Fraud is nonviolent crime that is carried out using __________.
a) a gun, knife, or other small weapon
b) deception, confidence, and trickery
c) embezzlement and electronic transfers of money
d) bribery and threats

23. Bernard Madoff is in jail after pleading guilty in 2009 to the biggest fraud in Wall Street history. Madoff carried out his fraud over four decades by relying on __________.
a) financial expertise and human error
b) social engineering and the predictability of human nature
c) red flags and accounting loopholes
d) unbelievable returns that defied the market

25. Fraud management starts with corporate governance culture and ethics __________.
a) in the accounting department
b) in the IT department
c) at the top levels of the organization
d) at the lowest levels of the organization

28. Before the people who are responsible for security make any decisions about infosec defenses, they must understand __________.
a) the requirements and operations of the business
b) how firewalls, anti-virus software, and other technology function
c) tactics of hackers, fraudsters, botnets, and identity thieves
d) how much to invest in risk management

30. Physical security includes several controls. Which of the following is not a type of physical control?
a) Security bonds or malfeasance insurance for key employees
b) Emergency power shutoff and backup batteries
c) Shielding against electromagnetic fields
d) Properly designed and maintained air-conditioning systems

31. Which of the following is not a type of administrative control for information assurance and risk management?
a) Fostering company loyalty
b) Immediately revoking access privileges of dismissed, resigned, or transferred employees
c) Instituting separation of duties by dividing sensitive computer duties among as many employees as economically feasible
d) Performing authorization and authentication

a) Security company IronKey reported that password cracking software can quickly copy the contents of a BlackBerry’s SD card and crack a 4-digit PIN in 30 seconds.
b) Password cracking software can crack security on a handheld device without alerting the owner that the device’s security has been compromised.
c) password cracking software can store log-in information for the cracked handheld, allowing a hacker to access the hacked device again, unless the user changes the password.
d) All of the above.

33. Network security involves three types of defenses, which are referred to as layers. Those layers consist of each of the following except:
a) perimeter security layer to control access to the network.
b) authentication layer to verify the identity of the person requesting access to the network.
c) biometrics layer to monitor network usage.
d) authorization layer to control what authenticated users can do once they are given access to the network.

34. A __________ is a system, or group of systems, that enforces an access-control policy between two networks.
a) firewall
b) switch
c) router
d) gateway

35. The major objective of __________ is proof of identity to identify the legitimate user and determine the action he or she is allowed to perform.
a) authorization
b) authentication
c) endpoint security
d) information assurance

36. When dealing with consumer-facing applications, such as online banking and e-commerce, strong authentication must be balanced with __________.
a) convenience
b) encryption
c) authorization
d) all of the above

37. Sensitive data that are encrypted with wired equivalent privacy (WEP) and transmitted between two wireless devices __________.
a) is fully secured
b) cannot be authenticated
c) has a moderate level of security
d) may be intercepted and disclosed

38. All of the following are characteristics of firewalls except:
a) Firewalls are a barrier between a corporate intranet or other internal networks and the Internet.
b) Firewalls function by deciding what traffic to allow into and out of the network and what traffic to block.
c) Firewalls must be configured to enforce the company’s security procedures and policies.
d) Network firewalls stop all viruses and most other types of malware.

39. __________, such as AirSnort and WEPcrack, are readily available tools that can be used to gain unauthorized access to networks putting them at great risk.
a) Wireless packet analyzers
b) Password crackers
c) Firewall sniffers
d) Intrusion detectors

41. The Sarbanes-Oxley Act (SOX):
a) is an antifraud law.
b) forces more accurate business reporting and disclosure of GAAP (generally accepted accounting principles) violations.
c) makes it necessary to find and root out fraud.
d) All of the above

42. Symptoms of fraud that can be detected by internal controls include all of the following except:
a) missing documents.
b) delayed bank deposits.
c) employees who do not take vacations or go out of their way to work overtime.
d) large increase in network traffic.

43. An estimated __________ of companies that suffer a significant data loss often go out of business within five years.
a) 23%
b) 43%
c) 73%
d) 93%

44. __________ is the chain of events linking the business continuity plan to protection and to recovery.
a) Disaster recovery
b) Auditing
c) Date recovery
d) Internal control

45. According to a Workplace E-Mail and Instant Messaging Survey of 840 U.S. companies, approximately__________ have had employee e-mail or text messages subpoenaed as part of a lawsuit or regulatory investigation.
a) 5%
b) 10%
c) 20%
d) 33%

True/False

46. A fiduciary responsibility is both a legal and an ethical obligation.

47. In general, risk management is expensive to the organization, but convenient for users.

48. The theft of confidential account data from HSBC Private Bank in Switzerland in 2007 had been done by hackers because of inadequate security controls.

49. Firewalls and intrusion detection systems are placed throughout networks to monitor and control traffic into and out of a network.

50. Today, infosec is mostly a technology issue assigned to the IT department. Incidents are handled on a case-by-case “cleanup” basis rather than by taking a preemptive approach to protect ahead of the threats.

51. There has been a steep increase in malware because of the availability of free, easy to use, powerful toolkits that even novice cyber criminals can use to develop malware.

52. A majority of data breaches involve some sort of insider error or action either intentional or unintentional. That is, the greatest infosec risks are employees and managers.

53. IT security is so integral to business objectives that it needs to be treated as a stand-alone function.

54. Despite the challenges organizations face trying to protect against threats from employees, insider incidents can be minimized with a layered defense strategy consisting of security procedures, acceptable use policies, and technology controls.

55. Types of unintentional threats that organizations must defend against as part of their IT security measures are human errors, sabotage, environmental hazards, and computer system failures.

56. Corporate and government secrets are currently being stolen by a serious threat called advanced persistent threat (APT), which are designed for long-term espionage. Once installed on a network, ATPs transmit copies of documents, such as Microsoft Office files and PDFs, in stealth mode.

57. Financial institutions, data processing firms, and retail businesses do not have to notify potential victims or reveal data breaches in which customers’ personal financial information may have been stolen, lost, or compromised.

58. The infosec defense strategies and controls depend on what needs to be protected and the cost-benefit analysis. That is, companies should neither under-invest nor over-invest.

59. Newly released viruses with unidentified signatures or that are hidden in an e-mail attachment are blocked by firewalls and antivirus software from entering a company’s network.

60. Sarbanes-Oxley Act is an antifraud law. It forces more accurate business reporting and disclosure of GAAP (generally accepted accounting principles) violations, thus making it necessary to find and root out fraud.

Short Answer

61. __________ is the word that refers to viruses, worms, trojan horses, spyware, and all other types of disruptive, destructive, or unwanted programs.

62. __________ is the supervision, monitoring, and control of the organization’s IT assets. COBIT is a guide to best practices in this area.

63. The purpose of the PCI DSS is to improve customers’__________ in e-commerce, especially when it comes to online payments, and to increase the Web security of online merchants.

64. From an infosec perspective, __________ has been used by criminals or corporate spies to trick insiders into revealing information or access codes that outsiders should not have

65. A __________ attack occurs when a server or Web site receives a flood of traffic—much more traffic or requests for service than it can handle, causing it to crash.

66. A __________ control is an automated method of verifying the identity of a person, based on physical or behavioral characteristics, such as a fingerprint or voice scan.

67. All Internet traffic, which travels as packets, should have to pass through a(n) __________ , but that is rarely the case for instant messages and wireless traffic.

68. The __________ environment is the work atmosphere that a company sets for its employees in order to achieve reliable financial reporting and compliance with laws, regulations, and policies.

69. An important element in any security system is the __________ plan, also known as the disaster recovery plan, which outlines the process by which businesses should recover from a major disaster.

70. Under the doctrine of __________ , senior managers and directors have a fiduciary obligation to use reasonable care to protect the company’s business operations. When they fail to meet the company’s legal and regulatory duties, they can face lawsuits or other legal action.

Essay

71. Why are internal threats a major challenge for organizations? How can internal threats be minimized?

72. Why do social networks and cloud computing increase IT security risks? How can those risks be reduced?

73. Identify and explain four of the major objectives of IT security defense strategies:

1. When a user clicks on a malvertisement on a Web site, the ad will __________.
a) release the latest malware to launch attacks on government agencies
b) redirect to and load a malicious Web site, which is a replica of the site the user was expecting
c) download a cookie that tracks the user’s purchases and credit cards
d) all of the above

2. A service level agreement (SLA) is a legal written contract between a vendor and client in which the vendor guarantees __________.
a) a maximum service charge
b) free upgrades for the length of the contract
c) no defects and/or no risk
d) a minimal level of service

4. Online channels and connectivity support __________, which minimizes the limitations of having to be physically present in a single location to collaborate or train.
a) the e-business process
b) telepresence
c) community
d) self-service

6. Priceline.com is an example of __________ commerce because the customer names a product or service and the desired price, and then Priceline tries to find a supplier to fulfill that need.
a) business-to-consumers
b) consumers-to-business
c) mobile
d) business-to-business

7. A benefit of hosting an e-commerce Web site on a third-party’s server is __________, which is being able to add-on additional capacity incrementally, quickly, and as needed.
a) scalability
b) maintenance
c) accuracy
d) security

8. In order to accept credit card payments for purchases, American Express, Visa and other credit card companies require that e-commerce Web sites be PCI DSS compliant and certified to __________.
a) help prevent credit card fraud
b) support Web site analytics
c) manage customer relationships
d) verify that the products are in-stock.

9. Which of the following is not a characteristic of competitive innovation?
a) No competitive innovation remains unique for long.
b) Leading companies are always looking for next-generation capabilities to develop new competitive advantage.
c) Most innovations cannot be duplicated by other companies.
d) A current approach is to integrate social networks.

10. In the e-commerce business model __________, a vendor asks its partners to place logos or banner ads on their sites. If customers click the logo, go to vendor’s site, and buy; then the vendor pays a commission to partners.
a) affiliate marketing
b) B2B commerce
c) relationship marketing
d) viral marketing

12. Which of the following is not one of Amazon.com’s success factors?
a) Patented IT developments
b) Personalized service
c) Physical warehouses designed for shipping small packages to hundreds of thousands of customers
d) Maintaining a constant business model

13. For banks, one benefit from implementing online banking is __________.
a) it offers an inexpensive alternative to branch banking
b) transaction costs are about 40% lower than at a physical branch
c) margins are higher because interest rates offered to customers are lower
d) all of the above

14. Characteristics of ING Direct’s competitive strategy include all of the following except:
a) paid the highest rates on savings accounts
b) invested heavily in marketing campaigns
c) could not be copied by competitors
d) had almost no bricks and mortar

15. Which of the following is not one of the challenges facing many e-tailers that can interfere with the growth of its e-tailing efforts?
a) channel conflict
b) reaching customers
c) conflict within their own offline operations
d) tough order fulfillment and logistics problems

16. When managers are planning and managing their online business, they should do all of the following except _____.
a) make data-driven, fact-based plans
b) identify all key assumptions in the marketing plan
c) monitor progress to identify when adjustments are needed, and then be agile enough to respond
d) build the marketing plan around the products, rather than on customer

18. E-procurement strategies and solutions have two basic goals, which are _____.
a) to control costs and simplify processes
b) collaboration and negotiation
c) supplier selection and product selection
d) RFQ processing and exchanges

19. The benefits of streamlining the e-procurement process within an organization’s value chain include all of the following except:
a) maximizes the number of suppliers
b) reduces the number of employees needed to process purchasing
c) reduces the time to order and receive items
d) helps employees make intelligent decisions when procuring items

20. Public and private __________ are sites where many sellers and many buyers buy and sell.
a) networks
b) exchanges
c) sources
d) value chains

21. ChemConnect.com and iSteelAsia.com are examples of vertical exchanges in which the prices of products __________.
a) change continuously based on the matching of supply and demand
b) are fixed based on contracts
c) change based on quantity purchased
d) are negotiated annually

24. American Express developed tools that improved compliance with procurement rules on indirect purchases, or MRO supplies. One of the major performance improvements was the __________.
a) increase in spot buying
b) elimination of maverick buying
c) reduction in billing errors
d) increase in purchases from local vendors

25. Why does maverick buying increase the costs of products?
a) Vendor’s prices may be high.
b) It can keep the company from getting volume discounts.
c) It makes the procurement process too complicated.
d) a and b

27. __________ systems using reverse auctions are often mandatory to ensure the best price and quality for government procurement of goods and services.
a) Electronic tendering
b) Cloud computing
c) Spot sourcing
d) Maverick buying

28. A survey conducted by the nonprofit Public Technology Institute (PTI) found 45 percent of local governments are using some form of __________ for applications or services because of budget pressures to reduce costs.
a) electronic tendering
b) cloud computing
c) spot sourcing
d) maverick buying

29. With __________, users log in once and then have access to all software and data sources that they are authorized to access.
a) cloud computing
b) data centers
c) servers
d) single sign-on

31. One of the major e-commerce services is __________, which consists of technology consultants, system developers, integrators, hosting, security, wireless, and networks.
a) e-process
b) e-infrastructure
c) e-markets
d) e-content

32. The goal of __________ is to find information and knowledge that describe the relationships among consumers, products, marketing methods, and marketers.
a) social marketing
b) surveys
c) market research
d) directory services

33. One of the problems with __________ advertising is that advertisers knew very little about the recipients.
a) direct mail
b) Web
c) interactive
d) social media

38. Credit card data is secured through __________ by using the SSL protocol in the browser of the buyer’s computer.
a) steganography
b) PKI
c) encryption
d) routers

39. Security requirements for conducting e-commerce are each of the following except:
a) authentication
b) integrity
c) privacy
d) e-money

40. Which of the following is not a characteristic of order fulfillment in B2C e-commerce?
a) It is very difficult to accomplish order fulfillment both effectively and efficiently since a company may need to ship small packages to many customers quickly.
b) Order fulfillment processes are basically the same regardless of the type and size of the products and the vendor.
c) Because of difficulties in B2C supply chains, companies outsource deliveries and sometimes also the packaging.
d) Order fulfillment includes not only providing customers with what they ordered and doing it on time, but also providing all related customer service.

42. __________ are the principal resources used to track visitors’ Web activities and from which e-businesses draw information about how visitors use a site.
a) Cookies
b) Firewalls
c) Log files
d) Flash files

43. Car insurance companies, manufacturers, and airlines are able to sell their products and services directly to customers via B2C sites and eliminate agents and retailers. This phenomenon is referred to as __________.
a) nonrepudiation
b) order fulfillment
c) intermediation
d) disintermediation

44. The legal and ethical issues related to e-commerce include all of the following except:
a) PCI
b) fraud
c) Web tracking
d) privacy

51. Early on, managers at Amazon.com recognized the importance of order fulfillment and made minor investments in building physical warehouses designed for shipping small packages to customers.

52. Hong Kong and Shanghai Bank developed a special system called HSBCnet to provide online banking in 60 countries. Using this system, the bank rapidly became a major international bank without developing an extensive new branch network.

53. Sellers that are click-and-mortar companies, such as Levi’s or GM, face channel conflict with their regular distributors when they circumvent those distributors by selling online directly to customers.

54. Only a few purely online e-tailers went bankrupt in the dot-com era because of problems with cash flow, customer acquisition, order fulfillment, and demand forecasting.

55. By using B2B, organizations can restructure their supply chains and partner relationships.

56. In the sell-side marketplace model, organizations sell their products or services to other organizations from their own private e-marketplace or from a third-party site.

57. Local governments implemented a public cloud, private cloud, regional cloud, government-operated cloud, or a cloud operated by a vendor despite the higher costs of cloud computing solutions.

58. One of the problems with direct mail advertising is that advertisers knew very little about the recipients. The problem is solved by using Internet-based interactive marketing.

59. Payments are an integral part of doing business in both traditional and online business. Traditional payment systems are effective for e-commerce, especially for B2B.

60. Order fulfillment includes providing customers with what they ordered and doing it on time, and providing all customer services, such as instructions, exchanges, and returns.

Short Answer

61. __________ are ads, that when clicked, will redirect to a malicious Web site that is a replica of the site the user was expecting to see.

62. A __________ is a legal written contract between a vendor or other service provider and the client wherein the service provider guarantees a minimal level of service.

63. In __________ transactions, both the sellers and the buyers are business organizations.

64. A benefit of hosting an e-commerce site on a third-party’s server is __________, which refers to the capability to add-on additional capacity incrementally, quickly, and as needed.

65. The PCI DSS (Payment Card Industry Data Security Standard) is a set of information security requirements to help prevent __________.

66. Toy manufacturers such a Fisher Price or Lego would face __________ with their regular distributors by circumventing those distributors and selling online directly to customers.

67. The return process is referred to as __________.

68. Corporate __________, also called corporate purchasing, deals with the buying of products and services by an organization for its operational and functional needs.

69. __________ refers to word-of-mouth marketing in which customers promote a product or service by telling others about it.

70. __________ is a part of a company’s back-office operations, which include inventory control, shipment, and billing.

Essay

71. List and define 4 of the basic types of e-business transactions.

72. What are reverse auctions and RFQs? Explain how they work and their purpose.
Why do governments and corporations frequently mandate the RFQ approach for procurements?

73. What are the two basic goals of e-procurement? Explain each goal.

74. List and explain two benefits of e-government.

75. Identify and briefly discuss two of the ethical issues related to e-business.

Chapter 7: Mobile Computing and Commerce

Multiple Choice

1. How can handheld mobile computing devices and technology significantly improve performance in the healthcare system?
a) Make it easier and faster to get prescriptions
b) Reduce the preventable errors made by healthcare providers
c) Reduce the need for emergency medical care
d) All of the above

2. Electronic prescription systems (EPSs) offer huge potential benefits, but several obstacles are slowing the adoption of these systems. Which of the following is not one of those obstacles?
a) the high start-up financial investment
b) insufficient knowledge of the EPS concepts
c) widespread EPS technology standardization
d) resistance from healthcare providers

3. Which is not one of the three dominant PC operating systems (OSs)?
a) Apple
b) Java
c) Linux
d) Microsoft Windows

4. Writing apps for handheld devices, such as smartphones, is __________.
a) easy because only a few lines of code are needed
b) easy because the devices have limited features
c) difficult because of many different models and OSs
d) about the same as writing apps for computers.

7. Which of the following is not a characteristic of Wi-Fi?
a) Most laptops today rely on Wi-Fi technology that require being in range of at least one satellite.
b) Wi-Fi performance decreases roughly significantly as distance increases at constant radiation levels.
c) Wi-Fi has fairly high power-consumption compared to some other standards.
d) Wi-Fi is used to support business and compliance requirements, such as the Mine Improvement and New Emergency Response (MINER) Act passed by the U.S. Congress.

8. Many financial service handhelds send SMS texts using __________, which work like telephone numbers, except that they are 5 or 6 characters long and easier to remember.
a) mobile PINs
b) packets
c) short codes
d) biometrics

9. The __________ is expected to emerge as the predominant market for mobile banking services done via cell phones or other mobile device.
a) Asia-Pacific region
b) European Union (EU)
c) United States (US)
d) United Kingdom (UK)

10. Which of the following is not one of the threats to mobile banking?
a) cloning
b) phishing
c) lost or stolen phones
d) SMS

11. Duplicating or __________ the Electronic Serial Number (ESM) of a cell phone and using it in second phone allows the perpetrator to have calls and other transactions fraudulently billed to the original phone.
a) cloning
b) phishing
c) smishing
d) vishing

12. One innovative payment systems uses an iPhone app called __________, in which two individuals can transfer money to each other simply by tapping their phones together.
a) bump
b) tap
c) QR
d) knock

13. An advantage of an __________, which is a piece of software, is that it that stores an online shopper’s credit card numbers and other personal information so that the shopper does not have to reenter that information for every online purchase.
a) e-phone
b) e-card
c) e-reader
d) e-wallet

14. Mobile commerce in __________ is growing exponentially and now represents the largest amount of m-commerce sales in the world.
a) Europe
b) Japan
c) developing countries
d) India

15. In Japan, wireless shopping is popular with busy single parents, executives, and teenagers, who are doing __________ percent of their e-commerce shopping from cell phones.
a) almost 25
b) up to 33
c) up to 50
d) over 80

16. According to the Daiwa Institute of Research, __________ account(s) for most of the purchases that are done on mobile phones, if the users are on flat-fee-based service.
a) entertainment
b) impulse shopping
c) travel
d) sports

17. The __________ continues to be a leader in making digital music, movies and podcasts available to consumers for a fee.
a) iTunes Store
b) Amazon.com
c) Fox Mobile
d) Grooveshark.com

18. Belgian Godiva Chocolatier is recognized worldwide as the leader in fine chocolates. The Godiva Mobile app integrates Godiva’s best selling products with the address book on a BlackBerry smartphone. Why is this integration a good strategic move for Godiva?
a) Consumers can purchase products by simply scrolling and clicking.
b) Godiva chocolates and other products are usually bought as a gift rather than for oneself.
c) Address book integration allows users to ship with just a few clicks.
d) All of the above

19. Why did Ericsson, Motorola, Nokia, and Siemens establish the Mobile Games Interoperability Forum (MGIF) that defined a range of technical standards?
a) To create a competitive advantage by running mobile games on proprietary networks
b) To make it possible to deploy mobile games across multi-game servers and wireless networks, and over different mobile devices
c) To compete against Microsoft in the mobile game market
d) To develop games that ran on slower speed networks

21. __________ is user-specific advertising that is location-sensitive and used to inform potential buyers about shops, malls, entertainment, and restaurants close to where they are based on the __________ in their cell phones.
a) Mobile marketing; SMS
b) Wireless marketing; cookies
c) Targeted advertising; GPS
d) Targeted advertising; router

22. __________ handhelds are a special technology that involves computer-generated images superimposed on pictures of real things and can be used by advertisers in several ways.
a) Augmented reality
b) Foursquare
c) WAP
d) Skype

24. Characteristics of voice portals include each of the following except:
a) Many organizations use voice portals to replace or supplement help desks and reduce costs.
b) Voice portals are used extensively by airlines enabling travelers to make reservations, find flight status, and more.
c) Voice portals are Web sites because they are accessed through a browser.
d) A benefit for Internet marketers is that voice portals can help businesses find new customers.

26. A global positioning system (GPS) is a wireless system that uses __________ to determine where the GPS device is located anywhere on the earth.
a) GIS
b) portals
c) satellites
d) servers

27. Engineers can find the location of any receiving station to within 50 feet by __________, using the distance from a GPS to three satellites to make the computation.
a) latitude
b) longitude
c) triangulation
d) altitude

29. Characteristics of NextBus include all of the following except:
a) The system knows exactly where buses are, but not individuals, which protects the person’s privacy.
b) San Francisco bus riders carrying a smartphone or similar device can quickly find out when a bus is likely to arrive at a particular bus stop.
c) The system tracks public transportation buses in real time.
d) The core of the NextBus system is a GPS satellite that can tell the NextBus information center where a bus is at any given time.

31. Data acquired by a GPS is inserted into a digital map, which is known as a __________, to identify a specific place or address.
a) geographical information system (GIS)
b) data visualization
c) mapinfo
d) mobile positioning center (MPC)

33. Why are leading organizations developing marketing and sales strategies built on connecting with their customers via mobile devices?
a) Because mobile transactions are now secure and protected against fraud.
b) To remain competitive with the vast majority of organizations that have developed plans for mobile customer service and support.
c) Because customers want to be connected to all aspects of their lives via their mobiles.
d) All of the above

35. What is a disadvantage of traditional POS technology?
a) Stations are fixed and require customers to bring their merchandise to a specific location.
b) They expedite checkout for those customers paying with credit card.
c) The processing is slow creating long lines of customers.
d) The technology is undependable.

36. Benefits of mobile POS stations include each of the following except:
a) Mobile POS stations can be setup as needed by using handheld computers, scanners and printers.
b) The stations are low cost and do not require employee training.
c) During periods of high volume, employees can setup temporary mobile check out stations capable of scanning merchandise bar codes, processing credit card payments, and printing receipts.
d) Employees can walk through a fixed station line offering to expedite checkout for those customers paying with credit card.

37. Ways in which the use of mobile devices in inventory management improves business performance include all of the following except:
a) Eliminates inventory out-of-stock situations.
b) Retailers can record merchandise when it enters the store, where it is stored, and when it is moved to the floor.
c) Delivery drivers can enter invoices and other shipping data into the store’s database at the point of delivery.
d) The cumbersome process of changing prices on in-store merchandise is easier.

38. For the 2010 census, the U.S. the government allocated $3 billion for handhelds to improve the interviewer’s performance in the field. What was the result?
a) The program was a success because it saved taxpayers over $3 billion.
b) The program reduced the cost of the census about $1 billion.
c) The program worked, but did not significantly reduce costs.
d) The program was a failure and had to be delayed to the 2020 census.

39. In the large software suites, such as Siebel’s CRM, the two CRM functions that have attracted the most interest are __________ and __________.
a) sales force automation; field service
b) collaboration; supply chain management
c) inventory management; mobile POS
d) job dispatch; messaging

43. __________ extends the reach of CRM—both inside and outside the company—and to both employees and business partners on a 24/7 basis, to any place where recipients are located.
a) Mobile CRM
b) ERP
c) Mobile SCM
d) CAT

46. Mobile computing has changed dramatically since 2008 as portable devices that connect wirelessly to the Internet became lighter, smaller, thinner, and much more powerful.

47. New categories of handhelds such as e-readers–Amazon’s Kindle and Apple’s iPad – have not been rapidly adopted.

48. Blackberry OS, made by Research in Motion, is currently the dominant smartphone OS in the U.S. and number two globally.

49. Companies need to develop Web sites and apps specifically for mobile OSs because consumers expect to access Web sites from their smartphones and other devices and are frustrated by companies that do not support their devices.

50. The mobile computing and commerce environment relies on two basic approaches to Internet connectivity: short range wireless technologies such as 3G and longer range telecommunications technologies such as 4G.

51. Wi-Fi has fairly high power-consumption compared to some other standards such as Bluetooth.

52. Several mining companies in Europe installed hundreds of Wi-Fi hotspots in their coal mines. Information from drills and trucks is transmitted wirelessly to the control center, which increases both productivity and safety.

53. Duplicating the Electronic Serial Number (ESM) of one phone and using it in second phone -the clone is referred to as phishing. This allows the perpetrator to have calls and other transactions billed to the original phone.

54. As interest in mobile commerce grows, there is a greater demand for innovative payment systems that make transactions from smartphones and other mobile devices convenient, safe, and secure.

55. Many of the new m-wallet products are safe and secure because confidential information in a user’s wallet is stored on the mobile device.

56. Mobile commerce in Japan is growing exponentially and now represents the largest amount of m-commerce sales in the world.

57. Location-based commerce (l-commerce) refers to the delivery of advertisements, products, or services to customers whose locations can be identified at a given time. L-commerce is beneficial to both consumers and businesses.

58. Greater adoption of mobile apps will change the way that organizations deal with both internal and external customer service and support. Therefore, most organizations have developed plans for mobile customer service and support for competitive advantage.

59. Long lines frustrate customers. Some studies show that at least one in 100 customers will abandon a long line, leaving the store without completing a purchase.

60. The cumbersome process of changing prices on in-store merchandise is made easier using mobile devices. Employees can walk the aisles of a store, scanning merchandise and checking the posted price against the price in the store’s UPC database.

Short Answer

61. Mobility started when computers became __________.

62. The iOS, Android and Palm operating systems are all based on modifications of the __________ OS.

63. In a typical wireless LAN configuration, a transmitter with an antenna, called a __________ connects to a wired LAN from a fixed location or to satellite dishes that provide an Internet connection.

65. Many financial service handhelds make use of __________ that are 5 or 6 characters long for sending SMS texts.

66. __________ is a mobile banking security risk because by duplicating the Electronic Serial Number (ESM) of one phone and using it in second phone, any calls or transactions are billed to the original phone.

67. __________ is the use of deceptive e-mail or other communication to trick the receiver into revealing confidential information, such as account numbers, passwords, or other identifying information

68. __________ equipment identifies the location of the mobile device either through GPS or by locating the nearest base station. The information is sent to the mobile positioning center.

69. A __________ is a wireless system that uses satellites to determine where the device is located anywhere on the earth.

70. During periods of high volume, __________ stations can be setup by using handheld computers, scanners and printers and that are capable of processing credit card payments and printing receipts.

Essay

71. Identify and discuss two ways in which mobile technology can be used to save lives.

72. List 4 of the most popular mobile OSs:

73. Identify three of the most common mobile banking services.

74. Select an industry (e.g., sports, travel, entertainment, retail, and manufacturing) and identify two ways in which mobile computing or commerce could improve financial or operational performance of a company in that industry.

75. Discuss ways in which mobile computing can improve customer service and reduce costs of providing that service.

Chapter 8: Web 2.0 and Social Media

Multiple Choice

1. According to cultural anthologist Michael Wesch, enhancements to the Internet known as __________ will cause us to rethink a lot of our assumptions about ethics, privacy, and governance.
a) Web 1.0
b) Web 2.0
c) microbrowsers
d) intelligent agents

2. What business lesson was learned from the United Breaks Guitars video that went viral shortly after it was posted on YouTube?
a) Negative viral videos posted by customers are not a potential threat to major companies, such as United Airlines.
b) Major companies can insulate themselves from unhappy customers with call centers.
c) Companies and their executives can no longer afford to hide behind slick advertising campaigns and press releases to protect their public image against viral threats.
d) Viral messages cannot damage a company’s brand image to the extent that there are significant financial consequences.

3. How effective was United Airlines (UAL) initial response to the viral threats from David Carroll’s Internet campaign against their poor customer service?
a) UAL was unprepared and clueless.
b) UAL accepted responsibility for the damage, but their response was only slightly effective.
c) Customer service representatives quickly resolved the complaint before the video went viral.
d) UAL was well-prepared to counter negative publicity from negative viral videos.

4. Organizations previously communicated with their audiences using a __________ model, where messages flowed from the sender to the receiver. Now, they must learn to use a __________ model, where communication flows back and forth between sender and receiver.
a) talking; listening
b) outbound; inbound
c) broadcast; conversation
d) indirect; direct

5. How has Web 2.0 affected people’s attitudes toward the way they want businesses to interact with them?
a) Customers expect businesses to use Web 2.0 capabilities to satisfy their needs.
b) Customers have lower expectations for a company’s character, ethical behavior, and privacy protection.
c) Customers’ attitudes have not changed because they’ve seen little change in the past after the use of other technologies.
d) Customers are not aware of Web 2.0 potential and, therefore, have no attitude about it.

6. Web 2.0 is also referred to as the __________.
a) public Internet
b) online community
c) Blog 2.0
d) social Web

7. Which of the following is a characteristic of Web 2.0?
a) static pages
b) user controlled content
c) the goal of marketing is to influence buyers
d) single source of data

8. Businesses can create __________ for a particular product and allow employees and customers to add, update, or contribute information that will form a knowledge base resource for those who need information about the product.
a) blogs
b) podcasts
c) social networking services
d) wikis

9. Facebook and other __________ are different from the broader category of online communities in that they usually allow individuals to control who can access information they post to the site.
a) bookmarking sites
b) mashups
c) social networking sites
d) wikis

10. The advantage of __________ is that they push content to users so they avoid the hassle of having to visit several different sites to get the information they are interested in.
a) tag clouds
b) RSS feeds
c) widgets
d) wikis

11. Which is not one of the characteristics of AJAX?
a) AJAX, or Asynchronous JavaScript and XML, refers to a group of technologies that create Web pages that respond to users’ actions without requiring the entire page to reload.
b) AJAX makes it possible for Web developers to create small apps that run on a page instead of running on a server.
c) AJAX capabilities increase the functionality of Web sites, but make content run much slower.
d) CSS and HTML are AJAX languages for Web 2.0.

–

12. How are social media influencing business strategies?
a) Businesses that used to develop sophisticated ways of getting their message heard must now develop sophisticated strategies for listening and responding to what their consumers are saying.
b) Now organizations have the technology and capability to fully control both the message and the medium.
c) Businesses are switching to a strategy of broadcasting a single message to a mass audience worldwide to establish brand identity instead of spreading multiple messages.
d) All of the above.

13. The Web 2.0 attitude and new way of thinking are captured in a list of 95 statements called the __________, whose first thesis is “markets are conversations.”
a) Mashup Manifesto
b) Tag Cloud
c) Cluetrain Manifesto
d) Virtual FAQs

14. WedMD is one of the popular __________, which are communities organized by interest, such as hobbies, vocations, political parties, and unions.
a) affinity portals
b) associations
c) ethnic communities
d) B2B online communities

15. In its corporate communications, Facebook is using the term __________ to refer to the global social network and reflect how we are all connected to one another through relationships.
a) mashup
b) LinkedIn
c) semantic Web
d) social graph

16. Businesses can use online communities as a platform for all of the following except:
a) prospecting for customers
b) identifying customer perceptions by conducting surveys
c) providing support services to customers, such as by answering questions
d) encouraging customers to share their positive perceptions with others; e.g., word of mouth

17. __________, such as Facebook, represent a special type of virtual community and are now the dominant form of online community. Individual users maintain an identity through their profile, for e.
a) Social graphs
b) RSS
c) Mashups
d) Social networking sites

18. __________ is a social network service with a 3D virtual world interface in which users, called Residents, are represented by avatars, or cyber bodies that they create.
a) Facebook
b) Second Life
c) Pandora
d) Yelp

19. Characteristics of the social network service Second Life include all of the following except:
a) Residents can earn Linden dollars by providing services such as instruction in a foreign language or serving as a DJ in a virtual club.
b) IBM, American Apparel, and other real world businesses have used the virtual world of Second Life.
c) Second Life is simple to use and requires users to learn only a few controls to become fully functional.
d) Using speakers and microphones, groups of people can conduct meetings in Second Life.

20. The microblogging site __________ is used by businesses as a way of directing traffic to updates on Web sites.
a) Ning
b) RSS
c) Second Life
d) Twitter

21. Why do companies create private social networks?
a) To better understand their customers
b) To communicate short messages with followers
c) To interact with employees using avatars
d) To broadcast messages to very large groups of followers.

22. Which is not an example of privacy violations associated with social media and social networking services?
a) Sharing information about members with advertisers without the users’ knowledge or consent.
b) Posting pictures of people on social networking sites without their permission.
c) Disclosing an employer’s proprietary information or trade secrets on social networking sites.
d) Responding with public backlash and outrage due to lack of protection.

23. According to Cecil Dijoux, Enterprise 2.0 is likely to create changes in the organizations. These changes include all of the following except:
a) Organizations will communicate with their employees using a conversation rather than a broadcast mode.
b) Managers will have to rely more on their job titles to maintain respect.
c) Important ideas are more likely to come from the workforce than from top-level managers.
d) Organizational structures will become more efficient and effective.

25. YouTube has become a popular way for companies, such as BlendTec, to promote themselves using __________, and often less expensive than traditional advertising efforts.
a) response hierarchies
b) mashups
c) microblogging
d) viral videos

26. Which is not one of the impacts of the use of BlendTec’s Integrated Social Media (ISM) strategy?
a) Company sales have increased by about 10% since the viral campaign was launched.
b) BlendTec established a huge fan base on a limited marketing budget.
c) The company had almost zero name recognition, but became one of the most watched collections of videos on YouTube.
d) While the YouTube videos are the most visible part, BlendTec’s ISM efforts also include a variety of tactics, such as RSS, Facebook, and Twitter.

27. Most large and medium sized companies utilize an Intranet based on __________ technology for internal collaboration and communication, which gives them control of the content.
a) Web 1.0
b) Web 2.0
c) social tagging
d) wikis

28. Sending out a paper memo or a mass e-mail from headquarters and expecting a desired response from company employees will __________ because of social media.
a) be totally eliminated within 2 years
b) increase significantly
c) be increasingly ineffective
d) increase in costs

29. Supply chains are __________ because they involve a number of people and organizations that must work together in order to create and deliver goods and services to consumers.
a) social entities
b) social media
c) Web 1.0 networks
d) response hierarchies

30. The effectiveness of social media activities are evaluated with __________.
a) standard metrics that are used for many traditional business activities
b) mashups such as dashboards and score cards
c) phone surveys
d) all of the above

31. If a company wanted to learn how customers feel about their products, the most appropriate metric would be to track the __________.
a) number of positive vs. negative blogs posts and videos about the company and their products
b) number of visitors who arrive at its Web site from a tweet or the company’s Facebook fan page
c) sales of competing and substitute products
d) number of service calls and complaint calls

32. Which is not a social media activity metric?
a) pageviews
b) posts
c) unique number of visitors
d) quality and speed of issue resolution

33. Which is not a social media survey metric?
a) time spent on site
b) satisfaction
c) content relevance
d) quality and speed of issue resolution

34. ROI measurements used to evaluate the effectiveness of sales and marketing include all of the following except:
a) cost per number of prospects
b) employee attrition
c) cost of lead
d) conversion of leads to customers

35. Traditionally, businesses developed media objectives around various models called __________, which are based on advertising or broadcast approaches to communication.
a) customer lifetime value (CLV)
b) NetPromoter
c) response hierarchies
d) trackbacks

36. __________ are effective and inexpensive ways to collect information from customers as well as to send information to them. It also can be used to gather intelligence on competitors.
a) Marketing research
b) Interactive social media
c) Dashboards
d) Mashups

37. The metrics a company uses are determined by their __________.
a) market share
b) net income
c) objectives
d) sales revenue

38. If a company’s objective is to “increase traffic to our Web site by 10 percent,” they would determine the relative impact of each social media activity on that objective using a __________ metric.
a) tactical
b) tool based
c) social network service
d) ROI

41. The W3C is developing standards for a(n) __________, or ways of describing data so that it can be used by a wide variety of applications.
a) metadata language
b) Semantic Web
c) database portal
d) RDF language

42. Much of the world’s data is stored in files that are structured so that they can only be read by the __________ that created them.
a) operating systems
b) computers
c) programs
d) hardware

43. The __________ allows programmers and users to make reference to real-world objects, such as people or chemicals, without concern for the underlying documents in which these things are described.
a) Application Programming Interface (API)
b) Hypertext Markup Language (HTML)
c) RDF Query Language
d) Semantic Web

44. While we sometimes talk about __________ as a future evolution, in fact, the new web is already here, but standards for tagging information with metadata labels hasn’t gotten very far yet.
a) Net Neutrality
b) Web 2.0
c) Web 3.0
d) social Web

46. The magnitude of change occurring online because of social media has created some unease on the part of traditional-minded businesses and individual users.

47. David Carroll’s ability to use social media to damage the reputation of United Airlines, a major corporation, has both fascinated and terrified many in the business world.

48. Motivated consumers, using the tools of social media, have the power to spread viral messages that can severely damage a company’s brand image, but that cannot cause significant financial consequences.

49. Because of Web 2.0, people have lower expectations for a company’s character, ethical behavior, responsiveness, and ability to meet their individual needs.

50. Managers who invest the time to understand and become proficient in new approaches to identifying, communicating and building relationships with customers online will have a tremendous advantage over managers who limit themselves to traditional methods.

51. While the applications that are labeled as Web 2.0 may simply be an extension of earlier advances, it is the change in user behavior that matters most to businesses around the world.

52. Because it is a common practice for bloggers to use a special kind of hyperlink called a trackback to reference other blogs in their writing, blogs are collectively referred to as the trackosphere.

53. Social networking sites are different from the broader category of online communities in that they rarely allow individuals to control who can access information they post to the site.

54. The varying font sizes of tags in a tag cloud represent the frequency of tags at the site.

55. Tag clouds are a spontaneous movement of people using online tools to connect, take charge of their own experience and get what they need from each other.

56. Social network analysis (SNA) is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledge processing entities.

57. In April 2010, Zuckerberg announced Facebook’s new initiative called Open Graph. The goal was to connect all the different relationships that exist on the Internet by linking Web sites to Facebook.

58. Business organizations are finding ways to establish a presence on popular SNS sites like Facebook and MySpace so that they can control their customers.

59. When automated, scorecards and dashboards are examples of mashups, which are Web 2.0 apps that pull data from multiple sources and display them in one location.

60. The future web will use context, personalization and vertical search to make the 3Cs–content, commerce and community–more relevant.

Short Answer

61. __________ are standalone programs that can be embedded into web pages, blogs, profiles on social networking sites and even computer desktops. Common examples are clocks, visitor counters, and chat boxes.

62. The term __________ refers to an application or webpage that pulls information from multiple sources, creating a new functionality.

63. __________ pushes content to users so they avoid the hassle of having to visit several different sites to get the information they are interested in.

64. __________ is the mapping and measuring of relationships and flows between people, groups, organizations, computers, or other information or knowledge processing entities.

65. Facebook uses ____________ , which are global social networks that illustrate how we are all connected to one another through relationships.

66. __________ is a model of problem solving and idea generation that marshals the collective talents of a large group of people.

67. The term __________ refers to Web 2.0 technologies used for some business purpose.

68. If a company knows how much each new customer is worth, then they can estimate the total revenue produced by their presence on the social network. This is an example of a quantitative or __________ metric.

69. __________ refers to a search strategy that focuses on finding information in a particular content area, such as travel, finance, legal, and medical.

70. With metadata, the information in these files can be __________ with information describing the nature of the data, where it came from, or how it’s arranged. That way it can be read and used by a wide variety of applications.

Essay

71. Identify and contrast four characteristics that differentiate Web 2.0 from Web 1.0.

72. Explain why organizations might create private social networks.

73. Identify two ways in which Enterprise 2.0 might change organizations or managers. Identify one potential benefit of Enterprise 2.0.

74. If a company’s objective is to increase traffic to its Web page by 5% per month, what metrics should be tracked to evaluate achievement of that objective? If a company’s objective is to learn how customers feel about their products, what should it track?

75. The key to an information-rich Web is information. However, not everyone is particularly interested in having their data made available to anyone who wants it. Identify and discuss three situations where data should be protected to prevent intrusions on privacy, to maintain public safety, and to protect national security.

Chapter 9 Operational Planning and Control Systems

Multiple Choice

1. __________ are planning and control systems that capture and record all of the company’s data from operations, and perform the routine transactions needed to conduct business on an ongoing day-to-day basis.
a) Operational information systems
b) Strategic information systems
c) Databases
d) Inter-organizational systems

2. Why did the largest Scandinavian food retailer group, Axfood AB, invest 200 million SEK (20.4 million Euros or US$25.6 million) in an IT platform?
a) To develop multi-cultural e-commerce capabilities
b) To fully integrate its diverse IT infrastructure to coordinate and connect its operations
c) To implement advanced technologies, including tags, RFID, and social media
d) To develop order fulfillment and logistics capabilities

3. Why are the three levels of management and decision making often modeled as a pyramid? .
a) To show the importance of senior management decision making on the organization.
b) To show the importance of the decisions made at each management level.
c) To show the hierarchy of the management levels.
d) All of the above.

4. Each level of management has its own _____.
a) data needs
b) decision making responsibilities
c) time horizons
d) All of the above

5. Strategic level decisions are visionary and future-oriented. What types of data are specifically required for these decisions?
a) Real-time transactional and POS data.
b) Internal data sales about inventory levels, orders, and customer support.
c) External and internal data that has a one to three year time horizon.
d) External data about the economy, competitors, and business trends.

6. What types of data are specifically required for decisions made at the managerial or administrative level?
a) Real-time transactional and POS data.
b) Internal data sales about inventory levels, orders, and customer support.
c) External and internal data that has a one to three year time horizon.
d) External data about the economy, competitors, and business trends.

7. At the __________ level, decisions are made to control the day-to-day activities.
a) operational
b) strategic
c) administrative
d) senior

9. Data integrity with real-time systems involves __________, which means that if all steps in a transaction are not completed, then the entire transaction is cancelled.
a) atomicity
b) consistency
c) isolation
d) durability

10. Which is not one of the key characteristics of a TPS?
a) Large volumes of data are processed
b) Involves extensive computation complexity
c) Data sources are mostly internal, and the output is intended mainly for internal users and trading partners
d) Involves a high level of detailed raw data

11. Generally speaking, why do organizations automate TPS data entry as much as possible?
a) To reduce labor costs
b) To be able to capture online data
c) For competitive advantage
d) To minimize errors and data entry time

12. A company’s payroll systems prepare and process the payroll data periodically, such as at the end of the work week. This type of processing is known as __________.
a) batch
b) real-time
c) online
d) data warehousing

14. First Choice Ski increased the number of Web site sales by 266%.and improved business performance after implementing __________, which enabled them to respond quickly to visitors’ clickstream behavior.
a) OLTP
b) order processing
c) POM systems
d) Web analytics

16. POM departments may keep __________, which is extra inventory in case of unexpected events, such as spikes in demand or delivery delays.
a) buffer stock
b) safety stock
c) shortage stock
d) a and b

17. A company’s inventory control system seeks to minimize each of the following cost categories except:
a) cost of labor
b) cost of holding inventory
c) cost of ordering and shipping
d) cost of inventory shortage

18. Toyota implemented __________ inventory management to minimize holding costs by not taking possession of inventory until it is needed in the production process.
a) economic order quantity (EOQ)
b) just-in-time (JIT)
c) quality control (QC)
d) total quality management (TQM)

19. Characteristics of projects that make them different from operations include each of the following except:
a) are unique undertakings
b) have a high degree of certainty with respect to costs and completion times
c) may compete and conflict with other business activities
d) involve a high risk of delay and failure, but has high profit potential or benefit

21. A leading sales automation software is __________, which is especially helpful to small businesses, enabling them to rapidly increase sales and growth.
a) Speedpass.com
b) SoftwarePlus
c) PriceMaster Plus
d) Salesforce.com

22. The Exxon Mobil Speedpass allows customers to fill their tanks by waving a token, embedded with an RFID device, at a gas-pump sensor. This is an example of __________.
a) data-driven marketing
b) a distribution channel
c) inventory control
d) a marketing channel

27. Bernie Madoff committed a record-setting fraud scheme for many years __________ was passed to prevent financial fraud.
a) before the Foreign Corrupt Practices Act
b) before the Sarbanes-Oxley Act
c) after the Sarbanes-Oxley Act
d) after the Patriots Act

30. The best-known part of financial planning is the __________, which allocates the financial resources of an organization among participants, activities, and projects.
a) annual budget
b) income statement
c) balance sheet
d) owners equity

31. Which is not one of the benefits of using budgeting software?
a) Reduce the time and effort involved in the budget process.
b) Make planning an ongoing continuous process.
c) Evaluate buy-versus-lease options
d) Automatically monitor exceptions for patterns and trends.

32. __________ is the process of identifying the financing of assets, including software, that need to be acquired or developed; and comparing alternatives.
a) NPV
b) Capital budgeting
c) ROI
d) General ledger

33. __________ is a programming language and an international standard for electronic transmission of business and financial information. It helps generate cleaner data, including written explanations and supporting notes.
a) SEC
b) FDIC
c) Excel
d) XBRL

34. The major purpose of __________ is to protect and defend the accuracy and condition of the financial health of an organization.
a) auditing
b) budgeting
c) financial planning
d) ratio analysis

35. __________ is a field that deals with policies, procedures, compliance requirements, and acquiring and keeping people in organizations.
a) Accounting
b) Human resources
c) Marketing
d) Management

36. __________ at virtual worlds and social networking sites is very popular. It is done at most major sites, such as LinkedIn, MySpace, Facebook, Craigslist, and Second Life.
a) Risk management
b) Distribution
c) Recruitment
d) Forecasting

38. Some of the most innovative HR developments are in the area of live online training (LOT) using __________ or other online meeting software.
a) CIM
b) TUN
c) VIS
d) WebEx

39. Providing flexibility in selecting benefits is viewed as a competitive advantage in large organizations. Employees can self-register for specific benefits using menus from a __________ or __________.
a) corporate portal; voice technology
b) blog; wiki
c) social network; extranet
d) All of the above

41. Training activities that are part of HRM may involve __________ issues in recruiting and selecting employees and in evaluating performance, in part because these activities make use of private confidential information.
a) strategic
b) operational
c) ethical
d) budget

42. An effective technology for e-training and e-learning is __________, which uses computer graphic displays that the user can adjust during the decision-making process to see the results of an intervention.
a) LOT
b) flash
c) WebEx
d) visual interactive simulation (VIS),

43. Second Life has a special forum on training and learning using __________ that organizations can use for employees, partners, and customers.
a) videoconferencing
b) animations
c) simulations
d) virtual worlds

45. Human resources information systems (HRISs), which were implemented on company networks since the late 1990s, have been moved to intranets and __________; and HR apps are leased in __________ arrangements.
a) social networks; vendor
b) proprietary databases; ERM
c) cloud computing; software as a service (SaaS)
d) virtual worlds; intelligent agent

True/False

46. Each level of management has its own data needs, decision making responsibilities, and time horizons.

47. At the strategic level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

48. At the operational level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

49. Tracking sales, inventory levels, orders, and customer support are examples of control activities.

50. A standard operating procedure, or SOP, is a loosely defined and suggested procedure for completing a process or function, such as a quality control process or function.

51. Data validation techniques, such as validating that the zip code is consistent with the address, are used to detect and correct data entry errors.

52. Data backups by themselves provide durability to protect data integrity in case of a system crash or other failure.

53. Core operations are supported by TPSs that monitor, collect, store, process, and disseminate information for both financial and non-financial (e.g., hiring) transactions.

54. Reservation systems used by airlines and for concert tickets sales are online transaction processing (OLTP) systems because data are processed as soon as transactions occur, in real time.

55. KIA Motors introduced an intelligent QC system to analyze customer complaints so they could more quickly investigate and make corrections. The analysis was done with data mining tools.

56. There is no shortage of customer and sales data, but there is a shortage of reliable, high-quality data and insight about how to use that data for better decisions that improve performance.

57. Inaccurate cash flow projection led to the demise of the investment bank Lehman Brothers in September 2008.

58. Cash flow projection is the process of identifying the financing of assets, including software, that need to be acquired or developed. It includes comparing alternatives or evaluating buy-versus-lease options.

59. With XBRL, all of the company’s financial data are collected, consolidated, published, and consumed without the need to use Excel spreadsheets.

61. The purpose of __________ is to identify deviations from objectives and plans as soon as possible in order to take corrective action.

62. At the __________ level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

63. At the managerial or administrative level, middle-level managers make __________ decisions that focus on intermediate-term issues to fulfill the organization’s mission, objectives, and strategy.

64. __________ is the analysis of data generated by visitors’ behavior on a company’s Web site.

65. Oracle, Siemens, and POM vendors offer a demand-driven __________ system, whose objective is to remove waste of any kind from production and operations.

66. A __________ is collection of tasks to achieve a non-routine result, such as implementing a new JIT inventory management system. It has a defined beginning and end; a scope, resources, and a budget.

67. __________ consist of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute relevant, timely, complete, and accurate data for use by marketing decision makers to improve their marketing planning, implementation, and control.

69. Good planning is necessary because a major reason organizations fail is their inability to forecast and/or secure sufficient __________.

70. In their effort to streamline HR processes and increase employee retention and productivity, companies are implementing Web-based __________ applications.

Essay

71. Identify the three organizational and management levels. For each level, explain the types of decisions made, the focus and time horizon of those decisions, and the types of data that are needed for their decisions.

72. What is a robot? Explain how industrial robots can be used in logistics, distribution, or materials handling.

73. Organizations distribute their products and services through a combination of electronic, mobile, and physical channels. List two examples of IT-supported distribution channels.

74. List three benefits of XBRL for organizations.

75. Sketch a diagram showing the flow of information in an online transaction processing system. Show inputs, processing, and outputs.

Chapter 10: Enterprise Information Systems

Multiple Choice

1. Typically, as business strategies and technologies changed, older legacy systems were:
a) modified repeatedly and patched to the point where they just could not be modified anymore.
b) immediately replaced with the latest software, hardware, and network technologies
c) gradually replaced with cloud computing solutions.
d) interfaced with newer information technologies so they could exchange data without limitations.

2. Enterprise systems are integrated ISs that support core business processes and functions. How is integration achieved?
a) Integration is achieved by connecting wired and wireless computer networks so they can share applications.
b) Integration is achieved by outsourcing to vendors that replace stand-alone ISs with a single IS.
c) Integration is achieved by linking databases and data warehouses so they can share data.
d) Integration is achieved by using cloud computing.

4. Under Armour Inc., the originator of performance apparel, was having had sharp spikes in orders. The company reduced the cost and effort of their order fulfillment process by replacing manual processes with __________ that provide data about resource availability and delivery dates.
a) available-to-promise (ATP) capabilities
b) enterprise systems
c) information silos
d) customer relationship management (CRM) capabilities

6. Prior to selecting and implementing an ERP or other enterprise system, it’s essential that a company identify the _____.
a) problems to be solved
b) goals to be achieved and type of support the IS is to provide
c) problems to be solved, goals to be achieved, and type of support the IS is to provide
d) cost of implementation and maintenance

7. __________ is the ability to thrive in a changing environment, which can be achieved by streamlining processes for quick response.
a) Agility
b) Scalability
c) Reengineering
d) Collaborative planning

10. With __________, suppliers and retailers collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them.
a) CPFR systems
b) ERP systems
c) KM systems
d) SCM software

11. Which is not one of the reasons why companies might need to migrate from legacy systems to enterprise systems?
a) Legacy systems have high maintenance costs.
b) Monolithic legacy architectures are inflexible.
c) Legacy systems are hardwired by predefined process flows making integration with Internet-based apps difficult or impossible.
d) Enterprise systems require retraining of end users whose productivity will slow initially as they adjust to a new way of doing their jobs.

12. Characteristics of enterprise systems include all of the following except:
a) Because of their complexity, enterprise systems are leased or licensed from vendors and customized with support from IT personnel who are familiar with their company’s business processes.
b) There is a trend toward ERP as a service, which is increasing.
c) Enterprise systems automated existing business processes to minimize disruption and training costs.
d) To simplify and reduce the high cost of the ERP software selection process, there is an annual ERP Vendor Shootout to help ERP selection teams at companies with manufacturing, distribution, or project-oriented requirements.

13. Each of the following describes ERP systems except:
a) ERP apps interface with business partners through a B2B gateway, but cannot interface with legacy apps.
b) From a technology perspective, ERP is the software infrastructure that links an enterprise’s internal apps and supports its external business processes.
c) ERP apps are modular, and the modules are integrated with each other to expand capabilities.
d) Departments can easily stay informed of what’s going on in other departments that impact its operations or performance.

15. Why are ERP systems strategic weapons for food manufacturers?
a) The threats and potential costs associated with food safety have decreased because of data transparency.
b) ERP systems have lowered global barriers to entry into the food industry.
c) ERP systems are needed for controlling costs, managing inventory, and meeting government regulations given the food industry’s margin pressures.
d) ERP systems are needed to monitor competitors’ business practices and quickly respond to them.

16. Typically, how are ERP systems acquired?
a) By purchasing or leasing packaged software
b) Built in-house
c) Built with proprietary software
d) Custom built by consulting companies and vendors

17. What is the first step toward becoming an agile manufacturer?
a) Reengineer financial business processes
b) Develop the means to monitor the marketplace
c) Develop new products and services for current and prospective customers
d) Implement inventory tracking systems

18. Lessons learned from ERP failures include each of the following except:
a) Several of the best companies have suffered devastating consequences from ERP failures that had led to multi-million dollar losses, bankruptcy, or lawsuits.
b) Most often, ERP failures are eventually fixed and remain in use, which gives the false impression that the ERP was successful from the start.
c) The success—as well as failure—of ERP depends on organizational and technological factors that occur prior to, during, and after the implementation.
d) Vendor blogs, white papers, and YouTube posts are good sources of objective data for selecting a compatible ERP solution.

19. Despite potential benefits, not all companies invest in ERP if they cannot meet requirements or overcome the challenges. Which of the following is not one of those requirements or challenges?
a) Applications must be tightly aligned with well-defined and designed business processes.
b) Initial costs to purchase or lease and set up the ERP are very low, but maintenance might be extremely high.
c) Selecting the appropriate ERP is time-consuming, complex, and expensive.
d) Apps may be too complex for employees to use correctly to improve efficiency and ROI.

25. The concept of an on-demand enterprise is based on the premise that manufacturing or service fulfillment operations will start only after an order is received. This approach is referred to as__________.
a) produce-to-stock
b) build-to-order
c) JIT
d) safety stock

33. Retaining customers that generate revenues in excess of the costs of customer service, returns, promotional items, and the like are critical; and are the underlying reason for __________.
a) EDI
b) ERP
c) CRM
d) SCM

34. What is the purpose of frequent purchase programs offered by airlines, supermarkets, credit card issuers, retailers, casinos, and other companies?
a) To track customers for CRM purposes
b) To build customer loyalty to improve financial performance
c) To deter customer attrition
d) All of the above

35. According to the loyalty effect, a five percent reduction in customer attrition can improve profits by as much as __________ percent.
a) 5
b) 10
c) 15
d) 20

36. Apple’s iPhone and iPod are best examples of __________ business strategies because demand was so high that many customers were even willing to camp out on sidewalks to guarantee getting one on the day of their releases.
a) customer-centric
b) product-centric
c) upselling
d) cross-selling

37. Which is not a characteristic of CRM?
a) CRM is an enterprisewide effort to acquire and retain profitable customers.
b) An objective of CRM is to retain all customers through excellent and personalized customer service and perks.
c) CRM focuses on building long-term, sustainable customer relationships for the purpose of increasing the company’s profitability.
d) CRM is basically a simple idea, which is to treat different customers differently according to the current or potential value to the company.

38. There have been many CRM failures reported in the media. Major issues relating to CRM failures include each of the following except:
a) Customers rejecting loyalty programs or attempts to build loyalty.
b) Failure to identify and focus on specific business problems that the CRM can solve.
c) Lack of active senior management sponsorship.
d) Trying to automate a poorly defined business process in the CRM implementation.

39. Harrah’s Entertainment Inc. treats its customers differently. The more a customer spends in a casino, the more rewards the customer gets. Harrah’s analyses customer data and assigns a value to each customer based on the results of __________.
a) customer segmentation
b) payoff ratios
c) NPV
d) data mining

40. Knowledge management is an important enterprise system for each of the following reasons except:
a) Forrester Research and IBM estimated that up to 85 percent of a company’s knowledge is not stored in databases.
b) Knowledge is dispersed in social media, e-mail, texts, intranets, and on individual computers and mobile devices.
c) Knowledge typically is highly structured and needs to be shared.
d) Knowledge is much more valuable than data and information, but it’s more ephemeral.

41. Which of the following statements about knowledge management systems (KMS) is false?
a) KMSs help an organization cope with rapid change and downsizing by making expertise of the organization’s human capital widely accessible.
b) KMS are being built, in part, from increased pressure to maintain a well-informed, productive workforce.
c) With a KMS, an organization is able to capitalize on the knowledge and experience of employees worldwide.
d) Knowledge is structured to increase its

44. Which is an example of knowledge?
a) A map giving detailed driving directions from one location to another.
b) An up-to-the-minute traffic bulletin along the freeway that indicates a traffic slowdown due to construction.
c) Awareness of an alternative, back-roads route to avoid traffic and construction in order to reach a destination as quickly as possible.
d) All of the above.

45. Why does a functioning KMS have a cyclical life cycle?
a) Knowledge is continually being created and that new knowledge must be placed in context and stored so that it is actionable.
b) Knowledge has a short useful life span and needs to be replaced.
c) As knowledge bases increase in size, they become less useful because the knowledge cannot be disseminated effectively.
d) Knowledge tends to be categorized incorrectly initially, and needs to be refined to become useful.

True/False

46. The payoff from the implementation of an SAP ERP at Under Armour was an increase in its top line–growth in sales–and bottom line–growth in net income.

48. A limitation of enterprise systems is that finance processes cannot be totally automated.

49. SCM is the software infrastructure that links an enterprise’s internal applications and supports its external business processes.

50. CPFR is a set of data-driven business processes designed to improve the ability to predict and coordinate with supply chain partners.

51. In a survey conducted by Food Engineering magazine, the top concern of the agri-food industry was food safety in large part because worldwide distribution systems have increased the risk and range of contaminated food entering the food supply.

52. Organizations are implementing CRM systems to meet requirements of the Bioterrorism Act and other regulations for accurate record keeping.

53. Database vendors such as Oracle and IBM are also enterprise system vendors.

54. The journey that a product travels starting with raw material suppliers onto manufacturers or assemblers, then forward to distributors and retail sales shelves and ultimately to customers is its product life cycle.

55. The most common solution to supply chain uncertainties is to build inventories or safety stock as insurance, but that can cause the bullwhip effect in the supply chain.

56. CPFR systems generate demand forecasts for a planning period, such as a quarter, month, or week.

57. According to management guru Peter Drucker, “Those companies who know their customers, understand their needs, and communicate intelligently with them will always have a competitive advantage over those that don’t.”

58. CRM software enabled Travelocity to analyze clickstream data and discover how customers use their Web site. This information is leveraged to provide meaningful personalized messages in real-time, that is, while customers are using the site.

59. Having knowledge implies that it can be used to solve a problem, whereas having information does not.

60. KM systems are developed using communication and collaboration, and storage and retrieval technologies.

Short Answer

61. Older information systems (IS), called __________, have been built with various outdated technologies.

62. With __________ systems, suppliers and retailers collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them.

65. __________ connect the ERP in the enterprise to external business partners.

66. The __________ occurs when companies significantly cut or add inventories because even small increases in demand can cause a big increase in the need for parts and materials further down the supply chain.

67. The transfer of data and document between supply chain partners is done using __________, which is a communication standard.

68. CRM is an enterprisewide effort to acquire and retain __________ customers.

69. __________ is unstructured, and has strong experiential and reflective elements that distinguish it from information.

70. __________ are interactive and help employees find and connect with colleagues who possess the expertise required for specific problems—whether they are across the country or across the room— to solve specific, critical business problems quickly.

Essay

71. List and describe three types of enterprise systems.

72. Why do companies migrate to enterprise systems from their existing legacy systems? List and briefly describe three reasons.

73. Why are ERP systems worth their cost? That is, how do companies justify ERP investments?

74. Identify and briefly describe the three types of flows in supply chains.

75. Identify and discuss four of the steps in the order fulfillment process.

Chapter 11 Business Intelligence and Decision Support

Multiple Choice

1. Managers rely on business intelligence, data mining, and the decision support systems in order to minimize __________.
a) business processes
b) inventory loss
c) customer dissatisfaction
d) uncertainty

3. What types or sizes of organization can afford today’s BI packages?
a) Fortune 500 and national government agencies only
b) major global corporations only
c) major global and large corporations only
d) all sizes including small and medium enterprises

5. DIRECTV’s business model is based on great customer service, attracting new customers, and preventing __________, in which customers switch to a competitor’s service.
a) SCM
b) CRM
c) customer churn
d) customer downsizing

6. As a manager, what type of problems would indicate that you could benefit from a BI solution?
a) Not having the right data
b) Low demand products
c) Slow network speeds
d) High fixed costs

7. From an IT perspective, which of the following best describes BI and BI apps?
a) Stand-alone
b) Support a specific objective
c) A collection of ISs and technologies
d) Web-based systems designed for for-profits

8. The value of __________ to managers is that these apps pull data from a data warehouse or other data store and then graphically depict the data in meaningful displays.
a) analytics
b) mashups
c) decision support systems
d) dashboards

9. The term __________ started in the music world, but has been adopted by IT to mean an application that combines data from different sources into a new application.
a) analytics
b) mashup
c) visualization
d) dashboard

12. __________ BI apps use real-time or near real-time data in order to support line managers who need to monitor performance of his or her business processes.
a) Strategic
b) Operational
c) Tactical
d) Traditional

13. In a tight economy with high interest and unemployment rates, any business project requiring a large financial investment needs to __________.
a) be economically justified
b) be approved by all senior managers
c) provide a competitive edge
d) improve operational efficiency

14. When you need to justify an IT investment, a(n) __________ is required to document your initiative and to move it through the approval and funding process.
a) budget
b) business case
c) ROI
d) payback analysis

15. Which of the following is not one of the three key business goals used to sell management on the need for a BI consolidation program?
a) Lowering total cost of ownership
b) Enabling businesspeople to analyze information
c) Increasing productivity
d) Improving consistency of and trust in information and analytics

19. Data mining and __________ tools are used to find relationships that are not obvious, or to predict what is going to happen.
a) DSS
b) reporting
c) predictive analytic
d) queries

20. After data has been loaded into a data warehouse, data tables can be linked to form __________, which is another term for multidimensional databases.
a) data cubes
b) relational databases
c) OLAP
d) ETL

21. Why does UPS use data analysis and visualization as part of its tactical and strategic planning process?
a) Delivery time is mission-critical
b) Workers need to quickly adjust operations as new information is received
c) To build a single version of the truth
d) a and b

22. The IT architecture that is needed for BI depends on each of the following factors except:
a) the number of event-driven alerts
b) the number and type of data sources or ISs
c) how much data extraction and transformation needs to be done
d) the reporting timeliness that’s needed

23. Planning a BI implementation is a complex project and includes typical project management steps. Therefore, the first step in the BI planning process is to _____.
a) define the scope
b) define the budget
c) identify the resources needed
d) define the timeline

24. Extracted data, particularly when it’s extracted from multiple sources, is not in usable format. Because of this problem, __________ tools have to map the field names of the same data types; and then reformat the data itself into a standard format.
a) data transformation and loading
b) data extraction and transformation
c) data query and reporting
d) data visualization

25. __________ is the ability to get to data details at several levels, which can be done by a series of menus or by query.
a) Ad hoc analysis
b) Key performance indicator
c) Critical success factor
d) Drill down

27. The strategic objective of __________ is to optimize the overall performance of an enterprise.
a) analytics
b) business performance management (BPM)
c) dashboards
d) reporting

28. Today, BI ranks near the top of many companies’ IT purchase plans. What is the underlying reason for this interest in BI?
a) Costs and complexity of BI software have dropped significantly.
b) Managers are more IT and database literate.
c) Inflation and energy prices are cutting into profit margins and consumers’ disposable income.
d) All of the above

30. In a __________, you are trying to find what others have prepared. With __________, you are trying to discover new patterns that may not be obvious or known.
a) query; Web mining
b) query; data mining
c) search; text mining
d) search: reporting

32. Which is not one of the characteristics or objectives of data mining?
a) The miner is often an end user.
b) Business sections that most extensively use data mining are manufacturing.
c) Data mining tools are readily combined with spreadsheets.
d) Sophisticated tools help to remove the information buried in corporate files.

37. Planning new services to be offered, hiring an executive, predicting markets, or choosing a set of research and development projects for next year are examples of __________ decisions.
a) structured
b) semistructured
c) unstructured
d) operational

38. Formal business procedures, cost minimization, profit maximization and algorithms, such as those used by eHarmony to match its members, are example of __________ decisions.
a) structured
b) semistructured
c) unstructured
d) operational

39. A properly designed __________ is an interactive application to help decision makers compile data and then analyze the data using business models.
a) TPS
b) MIS
c) SOP
d) DSS

40. A key benefit of DSSs is that they make it easy for manager to perform __________, which is the study of the impact that changes in one or more parts of a model have on the outcome.
a) sensitivity analysis
b) comparisons
c) pivots
d) goal seeking

41. Basic components of a DSS include each of the following except:
a) database
b) model base
c) user interface and users
d) network

45. Regarding mobile intelligence, __________ are locations such as the commuter train, aisle in a store, line in a factory, or retail floor where business people can make decisions without delay.
a) data centers
b) decision sweet spots
c) RFID
d) Wi-Fi

True/False

46. Twitter, Foursquare, and other real-time media add to or leverage capabilities of smartphones–improving your ability to be well-informed in real-time.

47. BI systems have eliminated a common organizational problem, which is simultaneously having too much data but somehow not enough.

48. It’s tough for managers to fully understand BI because BI apps are not stand-alone systems nor do they support a specific objective, as do SCM systems.

49. For-profit and nonprofit enterprises are getting more value from BI and existing data by extending information to all managerial levels and to employees.

50. Knowing how to interpret and act on the results from queries, reports, or analytics depends on BI capabilities.

51. Customer satisfaction, profitability, and sales per employee are examples of CSFs.

52. The BI capabilities of TRAC2ES include integrating data to give military decision makers a clear view of all the paths leading toward resolving resource allocation problems in order to save lives.

53. Integrating data for BI apps is complex because when data is extracted from multiple sources, the data are not in usable format.

54. Managers can better meet demands from customers, shareholders, and policymakers for environmentally-friendly business practices by using BI dashboards.

55. Given that approximately 20 percent of all collected/stored information is in text or nonnumeric format, text mining and Web mining are major growth areas.

56. Data mining techniques are well-suited to analyze financial time series data to find patterns, detect anomalies and outliers, recognize situations of chance and risk, and predict future demand, prices, and rates.

57. When you search for a certain book on Amazon.com, the site uses predictive and visualization tools to cross-sell by presenting to you a list of books purchased by customers who had bought that book.

58. Sensitivity analysis is extremely valuable in DSSs because it makes the system flexible and adaptable to changing conditions and to the varying requirements of different decision-making situations.

59. The speed with which Apple’s iPhone and iTouch have sold is an indicator that MI (mobile intelligence) apps will be in high demand.

61. __________ refers to a collection of ISs and technologies that support managerial decision making or operational control by providing information on internal and external operations.

62. __________ tools, e.g., dashboards and mashups, are the user-interfaces that help people understand the numbers.

63. Justifying an IT investment is also known as making a __________ for it.

64. __________ are areas in which managers fail to notice or to understand important information—and as a result make bad decisions or do nothing when action is needed.

65. Multidimensional (3D) views of data, such as sales revenue data, are referred to as __________.

66. __________ techniques are well-suited to analyze financial time series data to find patterns, detect anomalies and outliers, recognize situations of chance and risk, and predict future demand, prices, and rates.

67. A decision __________ is a simplified representation, or abstraction of reality.

68. __________ decisions are so well-defined that they can be automated or become standard operating procedures (SOPs) and do not require a DSS to solve.

74. What are DSSs? What types of decisions are best suited for support by a DSS? List and briefly explain the 4 basic components of a DSS.

75. Describe the mobile intelligence infrastructure. What factors are driving MI? Describe a MI app that you would find valuable as a manager.

Chapter 12 IT Strategic Planning

Multiple Choice

1. Making IT investments on the basis of an immediate need or threat are sometimes necessary. What can managers expect from making investments in this way?
a) These are proactive approaches that will maximize ROI.
b) These just-in-time approaches to investments minimize long-term costs.
c) These are reactive approaches that can result in incompatible, redundant, or failed systems.
d) These quick responses provide the best defenses.

2. The alignment of IT with the business strategy is dynamic and a(n) __________.
a) ongoing process
b) annual event
c) challenge for operations managers
d) decreasing in importance

4. Why did British-Swedish company AstraZeneca undergo a major restructure from a traditional model to a loosely-coupled business model?
a) Management forecasted a significant loss in its sales revenues.
b) Management wanted to implement the latest IT and social networks.
c) Competition in the pharmaceutical industry was decreasing.
d) All of the above

6. Typically, ITs that provide competitive advantages, or that contain proprietary or confidential data are developed and maintained by __________.
a) consulting companies
b) the in-house IT function
c) a single vendor
d) multiple vendors

7. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies’ strategic success. In addition, the survey reported that __________.
a) most business leaders work with IT to achieve success
b) most IT staff are very involved in the process of developing business strategy
c) only about one-third of business executives responsible for strategy work closely with the IT department
d) IT projects are rarely abandoned

8. Which is not one of the reasons why an IT project is discontinued or abandoned?
a) The project was under-budget
b) The business strategy changed
c) Technology changed
d) The project sponsors did not work well together

11. An organization’s __________ are action-oriented statements (e.g., achieve a ROI of at least 10 percent in 2014) that define the continuous improvement activities that must be done to be successful.
a) strategies
b) objectives
c) targets
d) mission statements

12. IT governance is concerned with insuring that organizational investments in IT __________.
a) support operations
b) provide sustainable competitive advantage
c) deliver full value
d) are audited quarterly

13. It is the duty of the __________ to insure that information systems, technology, and other critical activities are effectively governed.
a) IT function
b) Board of Directors (BOD)
c) end users
d) HR function

15. Characteristics of resources that can help firms create a competitive advantage are all of the following except:
a) appropriability
b) governance
c) rarity
d) value

16. Why is it insufficient to develop a long-term IT strategy and not reexamine the strategy on a regular basis?
a) Systems need to be maintained
b) To keep the CIO part of the executive team
c) Organizational goals change over time
d) To automate business processes

17. The __________ is a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the IS department is meeting the needs of the enterprise.
a) corporate steering committee
b) board of directors
c) executive suite
d) audit team

18. Based on case studies, the types of work that are not readily offshored include the following:
a) Work that has been routinized
b) Business activities that rely on an common combination of specific application-domain knowledge
c) Situations that would expose the client company to too much data security or privacy risks
d) All of the above

19. For best results, an organization’s strategic IT plan is based on __________.
a) IT governance
b) cloud computing
c) the latest mobile technologies
d) the strategic business plan

20. All of the following are tools or methodologies that managers use for IT strategic planning except:
a) business service management
b) business systems planning model
c) balanced scorecard
d) dashboards

21. Business service management is an approach for linking __________ or metrics of IT to business goals to determine the impact on the business.
a) key performance indicators (KPIs)
b) critical success factors (CSFs)
c) scorecards
d) financials

22. What do managers use KPIs for?
a) To measure real-time performance
b) To predict future results
c) To measure results of past activity
d) All of the above

24. Which is not one of the characteristics of critical success factors (CSFs)?
a) Organizations in the same industry have the same CSFs.
b) The CSF approach was developed to help identify the information needs of managers.
c) The fundamental assumption is that in every organization there are three to six key factors that, if done well, will result in the organization’s success.
d) The failure of these factors will result in some degree of failure at the organization.

25. __________ is used in planning situations that involve much uncertainty, like that of IT in general and e-commerce in particular.
a) Key performance indicators (KPIs)
b) Scenario planning
c) Critical success factors (CSFs)
d) Balanced scorecard

26. Resource allocation is a contentious process in most organizations because opportunities and requests for spending far exceed the available funds. This can lead to __________ among organizational units, which makes it __________ to objectively identify the best investments.
a) highly political competition; difficult
b) highly political competition; easier
c) cooperation; simple
d) cooperation; difficult

27. The __________ of organizations are the things they do best and that represent their competitive strengths.
a) competitive advantages
b) customer-facing activities
c) core competencies
d) back office functions

28. IT is difficult to manage for organizations __________. .
a) of all types
b) in retail
c) in manufacturing
d) in finance

31. __________ is the process of hiring another company to handle business activities for you.
a) Cloud computing
b) Business processing outsourcing (BPO)
c) SaaS
d) IT outsourcing

32. __________ includes many functions that are considered non-core to the primary business strategy, such as financial and administration processes, human resource functions, call center and customer service activities, and accounting.
a) Cloud computing
b) Business processing outsourcing (BPO)
c) SaaS
d) IT outsourcing

34. Lessons that eBay and Genpact learned from the BPO implementation include each of the following except:
a) Manage change by securing the commitment of senior leaders
b) Set realistic expectations and manage them actively
c) Focus on minimizing costs
d) Anticipate risks and formulate a plan for mitigating them

35. Which is not one of the lessons that eBay learned from its BPO implementation?
a) Challenges can be avoided by partnering with a global leader in business process and technology management.
b) Build a project-management infrastructure
c) Create a governance mechanism
d) Properly define how success will be measured

36. Since the late 1980s, many organizations have outsourced __________.
a) supply chain functions
b) the majority of their IT functions
c) only incidental parts of their IT function
d) marketing functions

37. The trend in outsourcing has been toward the __________.
a) single vendor
b) use of short term contracts
c) mega-deal
d) multi-vendor approach

38. The major reasons why organizations are increasingly outsourcing include each of the following except:
a) to focus on core competency
b) it’s a faster way to gain or enhance IT capabilities
c) to support supply chain transactions
d) cloud computing and SaaS have proven to be effective IT strategies

39. Which of the following statements about outsourcing is false?
a) Increasingly, organizations are leveraging existing global cloud infrastructures from companies such as Amazon and Google.
b) Established companies are less willing to outsource company-critical functions in an effort to reduce costs.
c) New start-up companies typically outsource and rely on SaaS to avoid upfront IT costs.
d) Outsourcing companies have started to offer interesting new business models and services around cloud computing.

40. Which is not one of the risks associated with outsourcing?
a) flexibility
b) shirking
c) poaching
d) opportunistic repricing

True/False

41. Making IT investments on the basis of an immediate need or threat is not a smart strategy because it can result in incompatible, redundant, or failed systems.

42. The two basic types of IT strategies are offshoring often with help from a consulting firm and/or vendor; and outsourcing to a third-party that resides either in the same country or is offshore.

43. For more productive service level agreements, companies may hire an outsource relationship management company to monitor and manage the outsourcing relationships.

44. To reduce costs, biopharmaceutical AstraZeneca shifted from a vertically integrated company to a loosely-coupled organizational model connected by outsourced arrangements and relationships.

45. AstraZeneca was able to quickly set up outsourcing relationships despite complex regulatory hurdles.

46. AstraZeneca had signed a seven-year global outsourcing agreement with IBM. Under the deal, IBM provides a single global technical infrastructure for AstraZeneca covering 60 countries.

47. IT strategic plans should be made within the context of the business strategy that it needs to support, which is how most IT planning is done.

48. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies’ strategic success, but few business leaders work with IT to achieve that success.

49. Both IT and organizational strategies are static and can be harmed when people resist change because IS success depends on the skills and cooperation of people.

50. Business strategy sets the overall direction for the business; while the IT strategy defines what information, ISs, and architecture are needed to support the business and how infrastructure and services are to be delivered.

51. Ultimately, it is the CIO’s duty to insure that IT and other critical activities are effectively governed.

52. IT plays a pivotal role in improving corporate governance practices because most critical business processes are automated; and managers rely on information provided by these processes for their decision making.

53. A prerequisite for effective IT–business alignment for the CIO to understand the latest technologies and for the CEO and business planners to understand competitors.

54. The IT planning process results in a formal IT strategy or a re-assessment each year or each quarter of the existing portfolio of IT resources.

55. The long-range IT plan, sometimes referred to as the strategic IT plan, is based on the strategic outsourcing plan.

56. In reality, because of the rapid pace of change in IT and the environment, short-term IT tactical plans may include major items not anticipated in the longer term IT plans.

57. An advantage of business service management software tools is that they provide real-time dashboard views for tracking KPIs at the executive, functional, and operations levels.

58. IT is an enabler of core competencies or competitive strengths; and it is complex, expensive, and constantly changing.

59. Since the late 1980s, many organizations have outsourced the majority of their IT functions, rather than just incidental parts to cut costs or manage the complexity of IT.

60. Risks associated with outsourcing are minimal because of service level agreements.

Short Answer

61. Cloud computing and software as a service (SaaS) have expanded __________ options.

62. __________ is how an organization intends to accomplish its vision. It’s the overall game plan.

63. IT __________ is concerned with insuring that organizational investments in IT deliver full value.

64. IT governance, like security, is an __________ and cannot be achieved by a mandate or set of rules.

65.The CIO must understand and buy into the corporate _________ so that IS planning does not occur in isolation.

66. __________ refers to the degree to which another resource can be used instead of the original resource to achieve the same value,

67. Business service management is an approach for linking __________ of IT to business goals to determine the impact on the business.

68. __________ of software development has become a common practice due to global markets, lower costs, and increased access to skilled labor.

69. The risk of __________ occurs when a vendor deliberately underperforms while claiming full payment.

70. The risk of __________ occurs when a client enters into a long-term contract with a vendor, but the vendor changes financial terms at some point or over-charges for unanticipated enhancements.

Essay

71. What are the four main points of IT strategic plans?

72. What are three issues driving the need for IT governance?

73. List four types of individuals concerned about IT governance.

74. Identify and briefly describe three important skill sets of CIOs.

75. What are the major reasons why organizations are increasingly outsourcing?

Chapter 13 Business Process Management and Systems Development

Multiple Choice

1. __________ are the building blocks of each functional area, e.g., accounts receivable (A/R) and accounts payable (A/P)
a) IT procedures
b) Business processes
c) Business strategies
d) Competitive forces

3

2. __________ is a technology approach to implementing a business process, but it’s only part of the technology required to implement business processes.
a) MIS
b) BPM
c) SaaS
d) SOA

3

3. Microsoft International’s lack of standardized business processes and process documentation had a number of adverse impacts on the HR team. Which is not one of those adverse impacts?
a) Decrease in errors by new hires
b) Increased the time and cost to train new employees
c) Limited ability to review their business processes
d) Decreased business process efficiency

4. Which is not one of the benefits that Microsoft International achieved through the use of Visio and business process modeling?
a) Significant savings in labor hours through increased process efficiency
b) Decrease in the training time of newly hired employees
c) Improved decision making through visual process analysis
d) Improved relationships with supply chain partners

5. When you break it down, you see that a business process is actually __________.
a) a project of known scope with an assigned budget
b) a loosely defined approach to solving an unstructured problem
c) a series of individual tasks executed in a specific order
d) clearly defined and automated by software

6. A process has inputs and outputs that are __________, which is necessary so it can be managed.
a) qualitative
b) measurable
c) visual
d) summary metrics

8. The __________ spec, also called the technical spec, is important to managers because it identifies how the business process will be implemented in as much detail as possible.
a) evaluation
b) implementation
c) project
d) design

9. During the implementation stage, __________ tests are critical because they determine whether the process is designed well from users’ perspective.
a) user acceptance
b) functional acceptance
c) system acceptance
d) integration

10. A(n) __________ is a set of technologies used for exchanging data between applications and for connecting processes with other systems across the organization, and with business partners.
a) ERP
b) mashup
c) SOA
d) Web service

11. During the implementation stage, __________ tests are critical because that is when analysts test whether the process performs its functions.
a) user acceptance
b) functional acceptance
c) system acceptance
d) technical acceptance

12. During the implementation stage, __________ tests are conducted by technical experts who attest that the process is integrated correctly with inputs and outputs of other processes and data sources and data stores
a) user acceptance
b) functional acceptance
c) system acceptance
d) integration acceptance

13. In the short term, business process management (BPM) helps companies __________.
a) improve profitability by reducing waste and costs
b) become more responsive to business changes
c) increase sales revenues and profit margins
d) all of the above

14. In the long term, business process management (BPM) helps companies __________.
a) improve profitability by reducing waste and costs
b) become more responsive to business changes
c) increase sales revenues and profit margins
d) all of the above

15. After decades of business process reengineering attempts, organizations still have problems with their business operations. What are those problems?
a) They duplicate processes
b) They perform hundreds of non-core tasks that should be outsourced
c) They spend vast amounts on proprietary process-management software that’s difficult to update
d) All of the above

16. British Telecom, United Airlines, and other companies that focused their BPM initiatives on process automation and cost savings had achieved significant operational efficiencies __________.
a) and higher market share
b) but lost their competitive edge and fell short of their performance targets
c) but only for a short time as competitors copied their efforts
d) because they were linked to their business strategies.

17. Changes to business apps that were needed prior to year 2000 were tedious and time-consuming because they were tightly coupled programs written in __________.
a) COBOL
b) Java
c) Visio
d) Flash

19. The advantage of the __________ is that any tier can be upgraded or replaced independently as business requirements or technology change.
a) tightly coupled architecture
b) middleware and graphical user-interface
c) three-tier software architecture
d) four-module tiered architecture

20. What was the underlying reason for the failure of the 2010 U.S. Census Bureau’s Handheld Project?
a) Failure of top management in the bureau to assess and mitigate risks of such a major project
b) Technical and database failures
c) Poor project management approach
d) Insufficient training of the census takers on how to use the handheld devices

21. Options for the acquisition of complex IT applications are all of the following except:
a) Built in-house
b) Custom-made by a vendor
c) Leased from an application service provider (ASP)
d) Out-of-the-box

22. For in-house development, the __________ option should be considered only for specialized IT apps for which components are not available because this option is expensive and slow.
a) build from components
b) build from scratch
c) integrating applications
d) prototyping

23. End-user development has risks and limitations, which include each of the following except:
a) End users may not be skilled enough in computers, so quality and cost may be jeopardized.
b) End users may not take time to document their work
c) End users may neglect proper security measures.
d) There may be an endless loop of prototype revisions.

24. Projects are managed by managing the triple constraints. Which is not one of those constraints?
a) approval
b) scope
c) time
d) budget

26. Project managers need to recognize the risk of __________, which is the piling up of small changes that by themselves are manageable, but collectively can cause significant project growth.
a) over allocation
b) critical path
c) triple constraints
d) scope creep

27. Project management includes three basic operations. Which is not one of those operations?
a) planning
b) budgeting
c) organizing
d) controlling

28. Project managers must manage the __________, which consists of tasks that must start and finish on schedule or the project will be delayed unless corrective action is taken.
a) over allocation
b) critical path
c) triple constraints
d) scope creep

29. The success of a project manager depends on all of the following except:
a) use of the critical path method and Gantt charts
b) clear, open, and timely communication
c) accurate, timely, and complete information
d) commitment from team members

30. The __________ is the traditional systems development method used by organizations for large IT projects such as IT infrastructure.
a) prototyping method
b) systems development life cycle (SDLC)
c) critical path method
d) sourcing method

31. Systems development involves __________, which is the revising of results of any development process when new information makes revision the smart thing to do.
a) iteration
b) scope creep
c) constraints
d) prototyping

32. The first stage of the SDLC is __________ to understand the business problem or opportunity.
a) systems analysis
b) systems investigation
c) prototyping
d) systems design

33. During the systems investigation stage, __________ studies are done to determine if the hardware, software, and communications components can be developed and/or acquired to solve the business problem.
a) economic feasibility
b) technical feasibility
c) ROI
d) NPV

34. During the systems investigation stage, __________ studies are done to assess the skills and the training needed to use the new IS.
a) economic feasibility
b) technical feasibility
c) organizational feasibility
d) behavioral feasibility

35. Covert resistance to a new IS from employees may take the form of __________.
a) sabotaging the new system by entering data incorrectly
b) continuing to do their jobs using their old methods
c) complaining about the new system for extended time
d) All of the above

37. When the system’s logical and physical designs specifications are agreed upon and approved by all participants, they __________.
a) should not be changed
b) should be flexible to changes
c) are used to develop the prototype
d) determine the budget and timeline for development

38. To add rigor to the programming process, programmers use __________ that improve the flow of the program by decomposing the computer code into modules.
a) GOTO statements
b) flowcharts
c) structured programming techniques
d) All of the above

39. Which is not a characteristic of program testing?
a) Testing verifies that computer code works correctly under various conditions.
b) Syntax errors are easier to find than logic errors because they prevent the program from running.
c) Logic errors are difficult to detect because they permit the program to run but result in incorrect output.
d) Proper testing can be done quickly and with little effort.

40. __________ conversion is the least expensive and highest risk IS conversion strategy because the old system is cut off and the new system is turned on at a certain point in time.
a) Parallel
b) Direct
c) Pilot
d) Phased

True/False

41. A business process, such as the credit approval process, accomplishes or produces something of value to the organization.

42. In order to manage a process, the process needs to have outputs that are measurable.

43. Process design is typically mapped and documented using a modeling tool, such as Microsoft Excel.

44. Not only is the development of the process important, the testing is equally as critical.

45. The BPM approach has its roots in just-in-time (JIT), which is the radical redesign of an organization’s business processes.

46. The BPR and JIT approaches were both based on assumptions. And if those assumptions are not met, then they will fail to achieve the great expected results.

47. Many JIT implementations in the U.S. actually increased inventory costs because JIT is based on the assumption that warehousing costs are extremely high, as they were in Japan where JIT was initiated by Toyota.

48. When applying business process reengineering (BPR), managers first attempt to automate or semi-automate an organization’s business processes.

49. An advantage of JIT is that it significantly decreases transportation and ordering costs.

50. In the 1990s, most organizations failed to achieve fundamental business process improvements because they attended a BPR seminar and then made mistakes in the implementation.

51. After decades of reengineering attempts, organizations no longer duplicate processes or perform non-core tasks that should be outsourced.

53. SOA is a confusing concept, even for practitioners, because SOA is mistakenly described like BPM or the definition is incomprehensible.

54. . An important aspect of SOA is the separation of the service interface (the what) from its implementation (the how).

55. SOA and BPM both focus on creating a more flexible IT architecture and optimizing the way actual work gets done.

56. Web services can connect processes with other systems across the organization, and with business partners. The resulting integrated BPM systems are BPM mashups.

57. The goal of loose coupling of apps is to reduce dependencies between systems to improve flexibility and agility.

58. Project resources must be managed according to the Gantt chart.

59. The SDLC is a structured framework that consists of sequential processes by which information systems are developed.

60. For many organizations, custom software is more expensive than packaged applications. However, if a package does not closely fit the company‘s needs, the savings are often diluted when the information systems staff or consultants must extend the functionality of the purchased packages.

Short Answer

61. A __________ is the smallest unit of work and management accountability that is not split into more detailed steps.

62. __________ are pre-configured, ready-to-go integrations between different business software packages. They streamline information sharing among systems.

63. __________ refers to a broad range of software or services that enable communication or data exchange between applications across networks.

64. __________ testing is important because it determines whether the app meets the original business objectives and vision.

65. Large IT projects, especially ones that involve infrastructure, are developed according to the __________ methodology using several tools.

66. A __________ is a type of bar chart that shows a project schedule.

67. __________ is the growth of the project after the scope has been defined and is a serious issue because it can cause the project to fail.

68. The purpose of the __________ is to recognize which activities are on the critical path so that managers know where to focus their efforts.

3. The IT sector is responsible for an estimated __________ of the global carbon footprint as a result of emissions from the energy used to run servers, computers, and other hardware.
a) 0.10 to 0.20 percent
b) 0.50 percent
c) 2 to 3 percent
d) 10 percent

4. The IT sector can cut its carbon footprint cut in half by _____.
a) switching to low emission data centers
b) buying eco-friendly hard drives with considerably reduced power consumption
c) placing data center in cold climates
d) all of the above

5. What is global warming?
a) The buildup of CO2.
b) The upward trend in the Earth atmosphere’s global mean temperature (GMT).
c) The holding of heat within Earth’s atmosphere by certain GHGs that absorb infrared radiation.
d) The sea level rise and melting of polar caps.

6. What is the greenhouse effect?
a) The buildup of CO2.
b) The upward trend in the Earth atmosphere’s global mean temperature (GMT).
c) The holding of heat within Earth’s atmosphere by certain GHGs that absorb infrared radiation.
d) The sea level rise and melting of polar caps.

7. Better use of IT to shift away from energy-intensive work habits and lifestyles to low carbon habits and lifestyles depends on _____.
a) mobile technologies
b) commitment of senior managers
c) government policy, incentives for companies, and active participation of consumers
d) cloud computing

8. In environmental terms, a process or industry is __________ when it uses up natural resources faster than they can be replenished.
a) low carbon
b) unsustainable
c) green
d) renewable

9. The GSMA’s Green Power for Mobile (GPM) program has the goal of helping the mobile industry use renewable energy sources, such as __________ to power over 100,000 off-grid base stations in developing countries by 2012.
a) solar, wind, and sustainable biofuels
b) nuclear and solar
c) hydro, coal and wind
d) diesel and solar

10. MTN Group is the mobile telecom company operating in Africa and the Middle East. MTN has reduced GHG emissions and costs by using __________ to run mobile base stations.
a) diesel
b) soybean biofuel
c) wind energy
d) hydro power

11. Routers, switches, and modems operated by end users have been inefficient power guzzling machines mostly because __________.
a) they are built at the lowest possible cost
b) eco-friendly manufacturing did not exist
c) performance speeds were higher than green ones
d) such machines were more reliable than green ones

12. Why are mobile handsets a threat to the environment?
a) They consume a lot of electric power.
b) They emit infrared radiation.
c) The renewal rates of mobiles tend to be very slow.
d) Millions of phones are disposed of, but recycling practices are very poor.

14. Which is not one of the characteristics or challenges associated with green IT?
a) Trying to quantify the cost savings of green IT may be impossible or non-applicable if cloud computing is used because the beneficiary of energy-efficient servers is not the company, but their outsourcer.
b) The Society for Information Management (SIM) surveyed CIOs and IT executives about their top IT and business priorities for 2010. Green IT was their top concern.
c) Green IT is a continuous process and requires long-term operating policies.
d) Green IT initiatives should be described in terms of reducing waste and inefficiency to get management’s attention.

16. The “Next Generation Data Center” strategy is based on the ability to deliver and support secure IT applications through __________.
a) mobile devices
b) wireless networks
c) green IT
d) virtualization

17. Data center virtualization means that servers are __________.
a) integrated so that they can be shared
b) condensed to increase processing power
c) consolidated so they are more secure
d) distributed to reduce cost

19. Opponents of social media monitoring define it as __________.
a) an unfair advantage or exploitation
b) environmentally harmful
c) spying and intolerable invasions of privacy
d) a business security risk

20. Despite the challenges and lack of clear answers, ethics is important because it has become clear that relying on __________ alone to safeguard the community is insufficient.
a) corporate policy
b) the law
c) audit trails
d) moral behavior

21. Blogging to influence financial markets may be deemed by the FTC or SEC as a(n) __________, particularly when done by the CEO hiding his identity.
a) federal crime
b) invasion of privacy
c) insider trading
d) money laundering

23. Bloomberg BusinessWeek (2008) reported that knowledge workers are distracted __________ at work—answering the phone, checking e-mail, responding to a text, or checking YouTube or Facebook.
a) every three minutes
b) every 15 minutes
c) every hour
d) at least twice a day

24. Which does not describe issues or characteristics of information quality?
a) Information quality is mandated by several legislations.
b) Information quality is a subjective measure of the utility, objectivity, and integrity of gathered information.
c) The most common problem that plagues online information sources is aged or outdated content.
d) Millions of individuals face information quality issues on a daily basis as they try to find information online.

25. Reduction in the total number of employees, reengineering of business processes, and the ability of lower-level employees to perform higher-level jobs may result in __________.
a) an increase in the number of special units
b) increased spans of control
c) centralization of authority
d) flatter organizational hierarchies

26. There is a trend toward __________ because the adaptable IT framework makes it much easier to manage issues of cost, scale and agility.
a) cloud computing
b) social media
c) fluid collaboration
d) service oriented architecture

27. New capabilities that are paving the way for new classes of Web apps include each of the following except:
a) location-awareness
b) online/offline modes
c) green IT
d) social connectivity

28. Which is not one of the trends in the future of IT in organizations?
a) Move into cloud computing
b) The new Web as a turning point
c) Devices become more specialized in the content they deliver
d) Conversation economy

29. As analytics become a commodity, the real differentiators are __________ and the ability to make productive decisions.
a) data quality
b) location-based services
c) social media
d) fluid collaboration

34. Annual emissions are generally measured in gigatonnes (billions of tonnes) of carbon dioxide equivalent per year (GtCO2e/y).

35. All carbon emissions worldwide make up the global carbon footprint.

36. The IT sector, including computing and telecommunications, is responsible for an estimated 10 percent of the global carbon footprint as a result of emissions from the energy used to run servers, computers, and other hardware.

37. IT can play a significant role in reducing GtCO2e/y in the transportation industries.

38. Innovative IT solutions can provide both a better quality of life and contribute to dramatically reduced emissions. That is, quality of life and reduced emissions do not require a tradeoff.

39. Business associations continue to fight against initiatives to reduce energy consumption and carbon emissions.

40. Warnings from the scientific community point to dangers from the ongoing buildup of CO2 and greenhouse gases mostly from the burning of fossil fuels and forests.

41. The greenhouse effect refers to the holding of heat within Earth’s atmosphere by certain GHGs such as CO2, methane, and nitrous oxide that absorb infrared radiation.

43. Scientists have determined that we should aim to stabilize the concentration of GHGs in the atmosphere in the range 450 to 550 parts per million (ppm), which is much lower than our present level.

44. The Keeling Curve tracks changes in the concentration of CO2 in the Earth’s atmosphere at a Mauna Loa research station.

45. The Keeling curve has become the symbol of the ever-changing chemistry of the earth’s atmosphere and the associated global warming.

46. In 2008, The Climate Group found that the information and communications technology (ICT) is a minor sector in the struggle to reduce climate warming.

47. Transforming the way people and businesses use IT could reduce annual human-caused global emissions by 15 per cent by 2020.

48. IT sector’s own footprint of 10 per cent of global emissions could decrease by 2020 despite increased demand for smartphones and other hardware, software, and services.

49. IT has the unique ability to monitor and maximize energy efficiency both within and outside of its own industry sector to cut CO2 emissions.

50. From smart meters to smart grids, the Climate Group is working with members and partners, such as Google and Cisco, to build on the enormous potential and economic opportunities of IT in the low carbon economy.

51. The role of IT includes emission reduction and energy savings only in the IT sector itself.

52. “Smart” as in smart buildings means that wasted-energy and materials are minimized; and procurement, manufacturing, distribution, service, and recycling are done in an environmentally friendly manner.

53. Green, whether applied to energy, technology, or consumption of resources in general, refers to the concept of using things at a rate that does not deplete its availability in future generations.

54. Sustainability, the study and practice of eco-friendly computing resources, may be in companies’ best financial interests.

55. Questions about data access and capture, tracking and monitoring, privacy and profiling are examples of IT capabilities that have ethical considerations. And there are no easy or agreed to answers to these dilemmas.

56. Globalization, the Internet, and connectivity have the power to undermine moral responsibility because it becomes relatively easy to ignore the harm that might be done to others.

57. IT decreases span of control, increases productivity, and increases the need for technical experts.

58. The trend toward cloud computing allows any part of the IT to be sourced from the Internet, ultimately offering a more flexible model that aligns better with business objectives.

59. Collaboration across time zones and geographies cannot become a business norm until language and cultural differences are minimized.

60. With IT creating organizations that have the characteristics of elasticity—scalable, infinitely flexible, and adaptive—companies and your job will be defined by IT.

Short Answer

61. __________ refers to the concept of using things at a rate that does not deplete its availability in future generations.

62. __________ technology optimizes the capacity and processing power of servers so that fewer servers are needed to provide the necessary processing power.

65. __________ may be considered an integral component of social media strategies because it gives marketers the ability to discover public conversations about their brands and, if necessary, respond to posters directly or to their posts.

66. Free speech and __________ collide in a world populated by anonymous critics, vengeful people, those with personal agendas, and malcontents.

67. IT’s capability to introduce ever-growing amounts of data into our lives can exceed our capacity to keep up with the data, leading to __________.

68. The Web is undergoing its most significant overhaul since the emergence of __________, and will emerge as an increasingly attractive enterprise platform.

69. __________ are emerging as a rich source of information about consumer sentiment, preferences and desires.

70. As analytics become a commodity, data and decision quality will provide the real competitive __________ .